The following statements are true regarding the customer perspective in the Balanced Scorecard EXCEPT:
A)Customer satisfaction leads to customer retention
B)A customer target might be to reduce cash expenses by 3%.
C)Customer retention generally leads to increased customer profitability
D)Success in the customer perspective should lead to improvement in the financial perspective.

Question

Quizplus · Accepted Answer

The customer perspective in the Balanced Scorecard is focused on measuring and improving customer satisfaction and retention, which ultimately leads to increased profitability in the financial perspective. However, reducing cash expenses is not a customer-related metric but rather a financial metric.

The Following Statements Are True Regarding the Customer Perspective in the Balanced