Customer

Definition

Depending on the firm’s business, a customer might be defined as an individual, household, screen-name, division, or business who bought, ordered, or registered.[1] The American Marketing Association defines “customer” as “the actual or prospective purchaser of products or services.”[2]

Purpose

Tracking a firm’s customers provides a measure of how well a firm is attracting and retaining them.

Construction

Customers are the number of people or businesses that have bought from the firm during a specified period of time. Avoid double counting people who bought more than one product.

References

  1. ^ Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; and David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance (Second Edition). Upper Saddle River, New Jersey: Pearson Education, Inc.
  2. ^ American Marketing Association, AMA Dictionary: Customer.  (April 2014)

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