DECA Sports and Entertainment Marketing Practice Exam

What does maintaining important relationships with customers allow a business to do?

1. Increase employee productivity

2. Reduce inventory costs

3. Enhance customer loyalty and sales

4. Develop more complex products

The correct answer is: Enhance customer loyalty and sales

Maintaining important relationships with customers allows a business to enhance customer loyalty and sales. When a business engages positively and consistently with its customers, it fosters trust and satisfaction. These relationships encourage repeat purchases and create a sense of loyalty, making customers more likely to choose that business over competitors. Moreover, satisfied customers are more inclined to recommend the business to others, which can lead to increased sales and a broader customer base. This focus on building strong customer relationships is crucial for long-term success and stability in the marketplace, as loyal customers often contribute more significantly to revenue through repeat business and referrals.