2. A profitable customer over time yields a revenue stream equal to the company's cost
3. Customer profitability analysis (CPA) is best conducted with the tools of an
accounting technique called Activity-Based Costing (ABC).
4. Customer lifetime value describes the net present value of the stream of future profits
expected over the customer's lifetime purchases.
5. A customer touch point is the time when the customer makes a purchase.
6. The first step in reducing the customer defection rate is to define and measure
7. The most profitable customers can be treated in a special way
8. Many companies confuse a customer mailing list with a customer database.
9. Database marketing is the process of building, maintaining, and using customer
databases for the purpose of contacting, transacting, and building customer
10. A customer mailing list contains business customers' past purchases, past volume,
prices and profits.
11. A 5 percent reduction in the customer defection rate can increase profits by 25
percent to 85 percent.
12. Most companies measure customer satisfaction and individual customer