How does customer engagement affect 'Weighted Revenue Risk'?

Customer engagement plays a crucial role in reducing 'Weighted Revenue Risk.' When customers are actively engaged, they are more likely to develop loyalty and an emotional connection to the product or service. This deeper relationship often leads to better retention rates, as engaged customers are less likely to churn or discontinue their use of a product.

Higher engagement typically translates into a greater understanding of the product’s value, meaning customers are more likely to renew contracts, expand their use of the service, or make additional purchases. This creates a more stable revenue stream and lessens the risk of revenue loss associated with customer turnover or dissatisfaction.

In contrast, the other options suggest that engagement either increases revenue risk, has no impact, or makes customers price-sensitive, which overlooks the fundamental benefits that strong engagement fosters—increased loyalty, higher renewal rates, and reduced churn—all of which contribute to mitigating revenue risk.