APICS Certified Supply Chain Professional (CSCP) — Question 298

It is most appropriate to measure spending per customer as a proportion of profitability during which of the following phases of a supplier/customer relationship?

Answer options

• A. Customer acquisition
• B. Customer retention
• C. Customer dependency
• D. Strategic customer care

Correct answer: B

Explanation

The correct answer is B, Customer retention, because this phase focuses on maintaining existing customers and maximizing their lifetime value, making it crucial to evaluate spending in relation to profitability. The other options, while relevant to customer relationships, do not emphasize the ongoing evaluation of spending versus profitability as effectively as the retention phase.