Nonfinancial measures of performance in the customer domain may be preferred to financial measures because they provide a more timely indicator of future financial performance.

Question

Quizplus · Accepted Answer

Nonfinancial measures, such as customer satisfaction and loyalty, can provide early indicators of future financial performance by reflecting the company's ability to retain and attract customers, which eventually translates into revenue and profit.

Nonfinancial Measures of Performance in the Customer Domain May Be