The Petrol House service station has introduced a balanced scorecard. The company wants to measure the amount of repeat business from customers. Which of the following measures would be most representative of this objective?
A) Profit per new customer
B) Percentage of a day's sales per customer
C) Percentage of a day's sales to new versus existing customers
D) Profit per existing customer

Question

Quizplus · Accepted Answer

The percentage of a day's sales to new versus existing customers would be most representative of measuring repeat business from customers. This measure compares the amount of sales from existing customers to the amount of sales from new customers, giving insight into how many customers are returning to the service station for multiple purchases. Profit per new customer and profit per existing customer do not give insight into whether customers are returning or not, and the percentage of a day's sales per customer does not differentiate between new and existing customers.

The Petrol House Service Station Has Introduced a Balanced Scorecard