ibps-so 2025 · Question 250 of 271

A company observes that a small group of customers contributes disproportionately to its profits. Instead of expanding to new markets, it decides to invest in personalized offers, loyalty programs, and long- term engagement strategies for these customers. Which concept BEST explains this decision?

1. AMarket penetration focusing on increasing usage among all customers
2. BApplication of Pareto Principle with emphasis on customer retention strategiesCorrect
3. CMass marketing approach aimed at maximizing reach across segments
4. DProduct diversification to reduce dependency on a limited customer base
5. ESales orientation focusing on aggressive selling to high-value customers