ACA ICAEW Business Strategy and Technology Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success!

Question: 1 / 400

How does technology enhance customer engagement?

By reducing costs only

By providing platforms for interaction

Technology enhances customer engagement primarily by providing platforms for interaction. This allows businesses to connect with customers in multiple ways, fostering a two-way communication channel that encourages feedback and participation.

The availability of various digital platforms—such as social media, websites, and mobile apps—enables customers to engage with brands in real-time, ask questions, share experiences, and participate in discussions. This interaction not only builds stronger relationships but also helps businesses understand customer preferences and needs, allowing for more personalized service.

By facilitating these interactions, technology cultivates a sense of community and belonging among customers, ultimately enhancing their overall engagement with the brand. This engagement can lead to increased loyalty, higher satisfaction, and improved customer retention, as customers feel valued and heard.

The incorrect answers relate to approaches that do not promote engagement. Reducing costs alone does not enhance interaction or connection. Limiting customer access and eliminating feedback channels directly hinder engagement by isolating customers and ignoring their insights and contributions.

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By limiting customer access

By eliminating feedback channels

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