How are customers who have not spent any money in the last 12 quarters classified?

Question

Options

• ARenewed Logo
• BStable Logo
• CDormant Logo
• DNew Logo

• A
  2% (1)
• B
  3% (2)
• C
  89% (58)
• D
  6% (4)

Explanation

Dormant Logo is correct because "dormant" literally means inactive or in a sleeping state - a customer who has made zero purchases across 12 quarters (3 years) is no longer actively engaging with the business, fitting this classification precisely.

Why the distractors are wrong:

• A. Renewed Logo - refers to a previously churned customer who has returned and restarted spending, the opposite of inactivity.
• B. Stable Logo - describes an existing customer with consistent, ongoing spend, not one who has gone silent.
• D. New Logo - refers to a newly acquired customer with no prior relationship, not a lapsed one.

Memory tip: Think of "dormant" like a dormant volcano - it was once active, it still exists, but it hasn't erupted (spent) in a long time. If a customer has gone quiet for 12 quarters, they've gone dormant.

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