ACCA Performance Management (F5) Certification Practice Exam

What is typically the last stage in a customer relationship development process?

1. Acquisition

2. Retention

3. Extension

4. After sales service

The correct answer is: Extension

In the context of customer relationship development, the last stage typically focuses on enhancing the relationship with the customer after they have been acquired and retained. This involves extending the relationship through additional offerings, increased engagement, and building deeper loyalty. Extension as the final stage signifies the importance of not just maintaining a customer but also actively seeking to expand the relationship beyond the initial purchase or service. At this stage, businesses often aim to introduce complementary products or services, deepen the customer's involvement with the brand, and foster long-term loyalty. Acquisition, while crucial, is earlier in the process as it involves attracting new customers. Retention comes after acquisition and focuses on keeping customers engaged and satisfied. After sales service, although important for maintaining satisfaction post-purchase, is part of the broader customer experience rather than the endpoint of relationship development. Understanding these stages underscores how businesses not only work to attract customers but also strive to deepen and extend their relationships, ensuring ongoing engagement and mutual benefit.