Which of the following metrics would most likely be used to determine the profitability of a customer or customer segment?
A) churn rate
B) margin on sales
C) cost per order
D) click-through rate
E) conversion rate

Question

Quizplus · Accepted Answer

Margin on sales is a measure of how much profit a company makes on each sale, and can be used to determine the profitability of a customer or customer segment. Churn rate, cost per order, click-through rate, and conversion rate are all important metrics for analyzing a business, but they are not directly related to profitability.

Which of the Following Metrics Would Most Likely Be Used