The Measurement of How Well a CRM Program Prioritizes Customers

question 30

Multiple Choice

The measurement of how well a CRM program prioritizes customers based on each customer's profitability is referred to as

• A)share of customer.
• B)lifetime value.
• C)customer focus.
• D)customer equity.
• E)dollar fill ratE.

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Definitions:

Bounded Rationality

A concept suggesting that decision-making is limited by the information available, cognitive limitations of the mind, and the finite amount of time available to make a decision.

Opportunity Costs

The potential benefits or profits lost when choosing one alternative over another, representing the cost of forgone opportunities.

Rational Decision

A decision-making process that is based on making choices that result in the optimal level of benefit or utility for an individual.

Economic Payoff

The return or financial outcome received from an investment, decision, or policy, typically expressed in terms of profit or cost savings.