Investment Management Certificate (IMC) Practice Exam

What is one benefit of enhancing the average purchase volume per customer?

1. It lowers operational costs

2. It increases overall company revenue

3. It reduces the burden of customer service

4. It limits customer choices

The correct answer is: It increases overall company revenue

Enhancing the average purchase volume per customer is primarily beneficial because it significantly increases overall company revenue. When customers buy more during each transaction, the total sales generated by the business rise without necessarily having to increase the number of customers. This can lead to improved profitability, as fixed costs are spread over a larger volume of sales. Additionally, increasing the purchase volume can foster better customer relationships, leading to repeat business and long-term loyalty, which further supports revenue growth. The other options do not directly address the core benefit associated with increasing the average purchase volume. For example, while lowering operational costs might be a separate business objective, enhancing purchase volumes does not inherently reduce costs; rather, it often increases revenue generation per transaction. Similarly, while managing customer service is important, increasing purchase volume doesn't necessarily relieve any burdens in that area. Finally, limiting customer choices could negatively affect customer satisfaction and sales, making it an unfavorable strategy rather than a benefit.