A Guide to the Net Promoter Score (NPS)
The NPS metric is a proprietary analytics instrument developed by Fred Reichheld, one of the owners of the NPS trademark. The theory was first developed in 2001 as an attempt to present a single survey question that is easy to administer to vast numbers of subscribers and easy to track and interpret. The primary objective […]
Your Customer Satisfaction (CSAT) Score Can Make or Break Your Business
We all know happy customers come back to do more business with our company. They also provide priceless word-of-mouth marketing by sharing their experience with others. Clients who rate our products and services as highly satisfactory are usually the ones that promote us to their colleagues, friends, and family. This improves both our conversion rates […]
Understanding Customer Acquisition Cost (CAC)
One of the reasons businesses fail is a wrong estimate of how much it will cost to acquire customers. If the cost ends up too high and exceeds the monetization of the customers, the business cannot operate sustainably. It is essential to understand how much a customer will generate for the business, as knowing this […]
The Value-Added Concept in Economics
The term value-added represents the enhanced value a company adds to its products and services. You probably notice that products sell for more than it costs to produce them, and services charge more than it costs to render them. This is what value-added represents. The essential purpose of any business is to create value that […]