To increase customer equity, which strategy could be applied?

Increasing customer equity is about maximizing the long-term value that customers bring to a business. One effective strategy to achieve this is encouraging customers to buy more frequently. When customers make purchases more often, their overall lifetime value increases, contributing significantly to customer equity.

This approach builds stronger relationships and loyalty. By creating strategies that lead to repeat purchases—such as loyalty programs, personalized marketing, or improved customer experiences—a business can not only enhance the frequency of purchases but also deepen the emotional connection a customer has with the brand.

The other options do not effectively contribute to increasing customer equity. Reducing product variety may lead to dissatisfaction and limit choices for customers, discouraging purchases. Limiting advertising efforts can diminish brand visibility and awareness, making it less likely for customers to engage with the brand regularly. Finally, focusing solely on acquiring new customers can overlook the potential value of existing customers, who, if nurtured correctly, can contribute significantly to the business's overall profitability. Therefore, increasing purchase frequency among existing customers is a critical and effective strategy for enhancing customer equity.