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    Question

    A bank observes that customers frequently close accounts

    after six months of inactivity. It introduces proactive engagement calls before the sixth month. This strategy primarily aims at:
    A Market penetration Correct Answer Incorrect Answer
    B Customer acquisition Correct Answer Incorrect Answer
    C Customer retention Correct Answer Incorrect Answer
    D Product diversification Correct Answer Incorrect Answer
    E Cost leadership Correct Answer Incorrect Answer

    Solution

    Retention strategies focus on preventing churn by maintaining engagement. Proactive calls aim to strengthen relationship before customers leave. Why Other Options Are Incorrect • A: Increasing market share, not preventing churn. • B: Acquiring new customers, not retaining existing ones. • D: Introducing new products. • E: Competing on cost. Banking Example: Reminder calls encouraging dormant account holders to transact.

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