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      Question

      Which strategy best reduces customer acquisition cost

      over time?
      A Increasing advertising frequency Correct Answer Incorrect Answer
      B Encouraging referrals Correct Answer Incorrect Answer
      C Lowering interest rates Correct Answer Incorrect Answer
      D Expanding branch network Correct Answer Incorrect Answer
      E Eliminating CRM Correct Answer Incorrect Answer

      Solution

      Referral-based acquisition lowers marketing spend per new customer. Why others are incorrect: More ads increase cost; Lowering rates reduces margins; Branch expansion increases cost; Eliminating CRM weakens retention. Banking Example: Refer-and-earn programs.

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