How to Answer: Which is more beneficial - to increase price by one percent OR to increase customer base by one percent?
Advice and answer examples written specifically for a Financial Analyst job interview.
16. Which is more beneficial - to increase price by one percent OR to increase customer base by one percent?
What You Need to Know
This question concerns the cost of retaining customers versus acquiring new customers. It sounds more like a problem-solving math question, but it's pretty straightforward. To answer this question, explain your knowledge of customer retention and acquisition. You can share what you have learned from your clients and how you prioritize them to maintain relationships and give them the results they need.
Written by Rachelle Enns
Answer Example
"I believe that customer retention and investing more in your customers should take precedence over increasing prices. You could lose your customers in the meantime, which will end up costing the company more in the long run. I believe it is more beneficial to increase your customer base every time."
Written by Rachelle Enns