Define customer equity, and explain why it is important to a company
What will be an ideal response?
Customer equity is the sum of the lifetime values of all the current and potential customers of a company. Customer equity is dependent upon customer loyalty from a firm's profitable customers. Because customer equity is a reflection of a company's future, companies must manage it carefully, viewing customers as assets that need to be maximized. It is important that companies not only acquire customers but also keep and grow them. When companies create profitable customers, they earn a greater share of their purchases, and capture their customer lifetime value.
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How should salespeople classify customers in order to achieve sales goals?
What will be an ideal response?
Estimates of a set of _______ such as sales growth rate, operating profit margin, working capital investment and cost of capital, are used to calculate the present value of forecasted cash flows and the residual value of the business after the
forecast period. a. value drivers b. customer value c. marketing value d. shareholder value
Stock dividends are ________
A) taxable at a higher level than dividend taxes B) taxable at a lower level than dividend taxes C) non taxable D) are taxable only to the shareholders
A statement of account lists all of the month's ____________ including the balance on the account, payments made during the month, and any credits issued
Fill in the blank(s) with correct word