HSC Retail Practice Test 2025 - Free Retail Exam Practice Questions and Study Guide

Question: 1 / 400

Which strategy can help retain loyal customers?

Offering the lowest prices in the market

Providing after-sales follow-up

Providing after-sales follow-up is a vital strategy for retaining loyal customers. This approach involves reaching out to customers after a purchase to ensure that they are satisfied with their product or service. It demonstrates that the business values their relationship beyond the initial transaction. After-sales follow-up can include activities such as checking in on the customer's experience, addressing any concerns, and inviting feedback.

This proactive communication can significantly enhance customer satisfaction and loyalty, as it helps build trust and reinforces the notion that the company cares about its customers' ongoing relationship. Furthermore, it can lead to repeat purchases, positive word-of-mouth referrals, and overall customer advocacy, which are crucial for long-term success in retail.

In contrast, offering the lowest prices may attract customers initially but does not foster loyalty, as price-sensitive shoppers may switch to competitors offering better deals. Reducing product quality can harm a brand’s reputation and diminish customer trust, leading to a loss of loyalty. Limiting payment options can also frustrate customers and hinder their purchasing experience, ultimately driving them away rather than keeping them engaged.

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Reducing the quality of products

Offering limited payment options

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