Exam 1 Concept Review Set 6

Question 1

_______ is the average spent to acquire a new customer. Advertising, sales promotion costs, etc.

Answer 1

What is Customer Acquisition Cost?

Question 2

_____ is the percentage of browsing customers that make a purchase.

Answer 2

What is the Conversion Rate?

Question 3

_______ is the percent of customers that are retained during a specific time period verses that percent which are lost.

Answer 3

What is the Retention/Churn Rate?

Question 4

________ is the average amount a customer spends over a specific period of time with your firm/product/brand

Answer 4

What is the Same Customer Sales Rate?

Question 5

______ is the monetary number that indicates what a customer will spend with a firm over time

Answer 5

What is the Customer Lifetime Value (CLV)?

Question 6

Why is the CLV relevant?

Answer 6

______ is relevant because it forecasts future profit produced by the customer for the firm - the sum of all the margins of all the products purchased over time, less the cost of reaching that customer. Provides an estimate of the profitability of a customer during the time span of the relationship.

Question 7

______ is the “net promoter” concept of customer satisfaction

Answer 7

What is the Net Promoter Score?