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.