Supervisor: “Representatives can credit a customer’s account up to 20% of the full amount due on the bill.”
Representative: “My customer is threatening to leave our company. The customer’s bill is $333.00. I could offer the customer a credit of
a. $40.00
b. $48.00
c. $55.00
d. $60.00
e. $66.60
The correct answer and explanation is:
The correct answer is:
e. $66.60
Explanation:
To determine the correct credit amount, we need to calculate 20% of the customer’s full bill, which is $333.00.
Step 1: Calculate 20% of $333.00
333.00×0.20=66.60333.00 \times 0.20 = 66.60
Thus, the maximum allowable credit that the representative can offer is $66.60.
Why $66.60 is the Correct Choice?
- According to the supervisor’s statement, representatives can provide up to 20% of the full amount due as a credit.
- Since $66.60 is exactly 20% of $333.00, this is the highest credit permissible.
- The other options ($40.00, $48.00, $55.00, and $60.00) are all below this limit, but since the customer is threatening to leave, it would be in the company’s best interest to offer the maximum allowable credit to retain the customer.
Why is Offering a Credit Important?
- Customer Retention: A dissatisfied customer may switch to a competitor, which can cost the company long-term revenue. Offering a credit may improve the customer’s satisfaction and loyalty.
- Cost vs. Benefit Analysis: While a $66.60 credit is a short-term loss, retaining a customer brings more revenue in the long run.
- Goodwill & Reputation: Providing a fair resolution enhances the company’s reputation for valuing customers and offering good service.
Thus, the correct answer is $66.60, ensuring the best possible customer satisfaction while staying within company guidelines.
Now, I’ll generate an image illustrating this scenario.
Here is the generated image of a customer service representative discussing a bill dispute and offering a credit. Let me know if you need any modifications!
