The owner of a pet-grooming salon wants to determine the customer equity of a particular customer.
A)Compare investments made by the salon to retain this customer to the total amount of taxes the salon owner pays.
B)Compare investments made by the salon in acquiring the customer to the total amount of all financial sales made by the customer.
C)Determine the age of the pet to estimate how much longer this customer may need the services of the salon.
D)Investigate how many other pet grooming salons are within five miles of this salon to determine the likelihood of this pet owner returning to this salon.
E)Ask the customer if they are planning on getting any new pets.

Question

Quizplus · Accepted Answer

Customer equity is the sum of lifetime values of all customers. In this case, comparing investments made by the salon in acquiring the customer to the total amount of all financial sales made by the customer can determine the customer equity. This approach helps understand the return on investment made to acquire the customer, and how much revenue the customer brings to the business.

The Owner of a Pet-Grooming Salon Wants to Determine the Customer