The Measurement of the Number of Customers Who Stop Using

question 22

Multiple Choice

The measurement of the number of customers who stop using or purchasing products or services from a company is called:

• A) switching costs.
• B) CRM rate.
• C) CLTV.
• D) switch rate.
• E) churn rate.

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Definitions:

ROE

ROE, or Return on Equity, measures a corporation’s profitability by revealing how much profit it generates with the money shareholders have invested.

Investments

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Compound Leverage Factor

A metric used to evaluate the effectiveness of using borrowed funds or financial derivatives to increase investment returns.

Debt Percentage

The proportion of a company's total liabilities to its total assets, indicating the degree of leverage used by the company.