Market Segments
Shares a customer's age, gender, and ethnicity.
Demographic Data
The total cost of acquiring a new customer.
Customer Acquisition Costs
Activities or strategies employed by a business to retain existing customers.
Customer Retention Rate
In which step of the sales process would you address customer concerns?
Objection
Outlines how products and services will be sold and delivered to customers.
Delivery Plan
Shares a customer's location.
Geographical Data
Customer Acquisition Costs Formula is...
[(marketing expenses) + (sales expenses)] / (# of new customers)
Customer Retention Rates Formula
{[(# customers at the end of a period) - (# of new customers aquired during a period)] / (# of customers from the start of the period)} * 100
In which step of the sales process would potential clients be contacted?
Approach
The amount of money a business plans on spending during a given period.
Budget
Anticipates a customer's needs.
Behavioral Data
Sarah runs a large toy store. Last year they acquired 5,000 new customers. Her company spent $30,000 in marketing costs and $15,000 in sales costs. What was Sarah's CAC?
$9
Ryan owns a music store. He wants to know his customer retention rate for the fourth quarter (Q4). What is Ryan's customer retention rate? Round to the nearest whole number.
a. Customers at the end of Q4: 275
b. Customers at the beginning of Q4: 260
c. New customers in Q4: 30
d. Customer retention rate: ?
94%
In which step of the sales process would a customer decide to purchase a product?
Closing
The process of improving your website to increase its visibility when people search products or services related to your business using a search engine (google, bing, etc..).
SEO (Search Engine Optimization)
Shows how a customer views the world.
Psychographic Data
Erin owns an ice cream shop. She spent $5,000 in marketing expenses and $2,000 in sales costs last year. She obtained 700 new customers. What was Erin's CAC?
Becky owns a coffee shop. She wants to figure out her customer retention rate for the first quarter (Q1). What is Becky's customer retention rate? Round to the nearest whole number.
a. Customers at the end of Q1: 250
b. Customers at the beginning Q1: 225
c. New customers in Q1: 35
d. Customer retention rate: ?
96%
In which step of the sales process would a presentation be shown to a customer?
Presentation
A written plan that outlines a company's marketing strategies.
Marketing Plan
Luxury products are one example of a brand that targets its customers based on their income. Think of an ad that features a sleek sports car as opposed to a marketing campaign that focuses on a car that gets great gas mileage. Which Market segments BEST reflect the statements above?
Demographic Data
Jon's company acquired 2,000 new customers last year. He spent $10,000 in marketing costs and $6,000 in sales costs. What was Jon's CAC.
$8
Steve owns a food truck. He wants to figure his retention rate for September. What is Steve's retention rate for September? Round to the nearest whole number.
a. Customers at the end of September: 130
b. Customers at the beginning of September: 120
c. New customers in September: 20
d. Customer retention rate: ?
92%
In which step of the sales process would potential customers be identified?
Prospecting
First-hand research like surveys, interviews, and statistical data.
Primary Data