Nonfinancial measures of performance in the customer domain are important because:
A) They are often leading indicators of financial success in the future.
B) They are more easily measured and monitored than financial indicators.
C) They are easily disaggregated by customer and product line.
D) They are not subject to gamesmanship by management.

Question

Quizplus · Accepted Answer

Nonfinancial measures in the customer domain, such as customer satisfaction and loyalty, can be leading indicators of future financial performance. High levels of customer satisfaction often translate into repeat business and referrals, which can improve financial outcomes over time.

Nonfinancial Measures of Performance in the Customer Domain Are Important