Question

A company that uses a four-tiered system to rank the profitability of its customers is:

A. Expanding the 80/20 customer pyramid
B. Eliminating non-profitable customers
C. Using volume segmentation
D. Committed to providing service equality to its customers
E. Not very knowledgeable about its customers

Answer 1

The company that uses a four-tiered system to rank the profitability of its customers is B. Eliminating non-profitable customers.

Step-by-step explanation:

The company that uses a four-tiered system to rank the profitability of its customers is B. Eliminating non-profitable customers.

In this system, the company categorizes its customers into four tiers based on their profitability. This helps the company identify its most profitable customers and focus on providing them with better services, while also determining which customers are not profitable and should be eliminated.

By eliminating non-profitable customers, the company can allocate its resources more efficiently and improve its overall profitability.