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Asked by Margo Alvarez HB on Jun 19, 2024

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According to Frederick Reichheld,what is the best indicator for a firm's growth?

A) customer repurchase rates
B) long-term customer retention rate
C) number of customer recommendations
D) ratio of customer profits and marketing costs

Frederick Reichheld

A business strategist best known for his work on customer loyalty, including the development of the Net Promoter Score (NPS) as a measure of customer loyalty and satisfaction.

Customer Repurchase Rates

The frequency or likelihood with which a company's customers buy its products or services again.

Long-Term Customer Retention Rate

A measurement of how well a company can retain its customers over an extended period, indicating customer loyalty and satisfaction.

  • Gain insight into the importance of expenses related to customer acquisition and retention.
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Christian RiveraJun 22, 2024
Final Answer :
C
Explanation :
Frederick Reichheld identified the number of customer recommendations, or the Net Promoter Score (NPS), as the best indicator of a firm's growth. He argued that customers who are promoters of a brand are more likely to contribute to its growth through positive word-of-mouth, leading to new customer acquisition and increased loyalty.

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