My Product Over The Competition Essays

1202 Words Jun 13th, 2016 null Page
Customer Metrics

Who is my specific customer and why will they by my product over the competition?

Customer metrics consist of Customer acquisition, Churn rate, Lifetime value of a customer, and Customer satisfaction rate. The customer acquisition takes equals the total sales and marketing cost divided by the number of new customers added. You will always need new customers. Your company will be able to acquire new customers by producing a product they want. You also want to make sure that you are spending the correct amount on sales and marketing to result in a profit. The churn rate equals the number of customers who left divided by the total number of customers. The churn rate is important in keeping the new clients you have acquired. The churn rate also keeps records of who is staying and going. The lifetime value of a customer equals the average order total times each customer’s average number of purchase per year divided by the churn rate. The lifetime value of a customer is to keep track of how much your customer is worth. The customer satisfaction rate is about making the customer happy. When the customer is happy they will return. The customer metrics would be qualitative in nature. It is qualitative because is finding what the customer wants and if they are satisfied. The customer metrics follows first under the first tier. The first tier is about starting the organization and acquiring new customers. Over the course of the company will follow under all tiers.…

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