Let’s imagine you are the customer portfolio manager of a wireless phone company. How should you...

Let’s imagine you are the customer portfolio manager of a wireless phone company. How should you be evaluated at the end of the quarter? Straight sales form your customer? Net sales (Sales minus cost to serve)? Customer satisfaction? Would it make more sense for you to be evaluated on a combination of how much your company made from your customers this quarter and also- as of this quarter- what the two-year projected value of your customer base is? Five project value? Why?

Expert Solution

Let’s imagine you are the customer portfolio manager of a wireless phone company. How should you be evaluated at the end of the quarter? Do straight sales form your customer? Net sales (Sales minus cost to serve)? Customer satisfaction? Would it make more sense for you to be evaluated on a combination of how much your company made from your customers this quarter and also- as of this quarter- what the two-year projected value of your customer base is? Five project value? Why?

ANSWER:

It would be most practical and prudent to be assessed on the blend of how much your organization produced using my customers.
The remote telephone industry is profoundly capital serious and works on slender edges. So the most significant measurement to be considered is the ARPU i.e the average revenue per user.
In this industry, higher ARPU translates to higher benefits. Along these lines, as a portfolio chief, what is the normal ARPU of every one of my customers, their year-on-year development rate, and so on should be assessed to pass judgment on my performance.
My performance ought to likewise be assessed remembering a more drawn out time span i.e 5 years projected value, as it gives a superior picture over a more drawn out time period and wider horizon.

keosha answered 1 year ago

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