Asked by Toàn Tr?n Khánh on Jun 05, 2024

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One of the reasons marketers use loyalty segmentation is

A) the high cost of finding new customers.
B) government tax incentives.
C) accounting difficulties associated with identifying new customers.
D) rapid population increases.
E) the failure of micromarketing as a workable strategy.

Loyalty Segmentation

The process of dividing a customer base into groups based on the degree of loyalty they exhibit towards a brand or product.

Micromarketing

A marketing strategy focused on a small group of highly targeted customers, tailoring products and marketing messages to their specific needs and preferences.

Population Increases

refers to the rise in the number of people in a particular area, affecting various aspects of society including demands for goods and services.

  • Comprehend the importance of loyalty segmentation in enhancing customer retention and increasing profitability.
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ER
Emily RodriguezJun 11, 2024
Final Answer :
A
Explanation :
Loyalty segmentation focuses on identifying and targeting customers who are already loyal to a brand or company. This is because it is often more cost-effective to retain and upsell to existing customers than it is to acquire new customers. Finding new customers can be expensive and time-consuming, making loyalty segmentation a valuable strategy for maximizing return on investment.