Testing Your Knowledge About Customer Value

• Why is it important for business owners/managers to know the value of a customer?
• If you wanted to know the value of your customers, what information would you need to gather – and why?
• Explain how you would gather the information you identified in the question above.
• What is meant by the “cost of a customer”? How do you determine a customer’s cost? Why is this important to know?
• What is meant by the “average sale to a customer”? How do you determine average sale? Why is this important to know?
• What is meant by the “value of a returning customer”” How do you determine this value? Why is this important to know?

Here’s what to do:

1.     Open a Word document. Save it as: YourFirstName_GUSTID_Value.doc. Type your full name and GUST ID at the top of the first page.

2.     Answer the questions listed above. You can write in bullet point format, or in paragraph format, but you must write in complete sentences and completely answer the questions.

3.     Make certain that you explain your answers. It’s not enough to write a few words; it’s important that you include an explanation.

4.     Do your own work . . . no two answers should be the same from different students . . . if I see this I will “flag” both tests and question you about how you and another student used the same words and ideas. Do your own work!

5.     Email the file to me before Saturday Nov. 1 at 3 p.m. in Kuwait. Subject of your email: Value.

This is a graded test that is part of your assessment category for your final grade.