The owner of a pet grooming salon wants to calculate customer equity. Which of the following is a step the owner of this pet grooming salon should complete?
A) Compare investments made by the salon owner in acquiring the customer to the total amount of purchases made by the customer.
B) Compare investments made by the salon owner to retain this customer to the total amount of taxes the salon owner pays.
C) Ask the customer if she is planning on getting any new pets.
D) Investigate how many other pet grooming salons are within five miles to determine the likelihood of this pet owner returning to this salon.
E) Determine the age of the pet to estimate how much longer this customer may need the services of the salon.

Question

Quizplus · Accepted Answer

Customer equity refers to the total value of a customer to a business over the lifetime of their relationship. To calculate this, the salon owner should compare the investments made in acquiring and retaining the customer to the total amount of purchases made by the customer. This will give a better picture of the value of the customer to the business. The other options may provide useful information but are not directly related to calculating customer equity.

The Owner of a Pet Grooming Salon Wants to Calculate