My Sales Are Lost, and I Can't Find Them. Archer Meddleton, Inc. has developed a successful e-tail
Question:
My Sales Are Lost, and I Can't Find Them. Archer Meddleton, Inc. has developed a successful e-tail business related to the sale of antiques. Archer keeps numerous marketing statistics about its web sales.
The Archer website was subjected to an attack in December and shut down for one day. At the time, a great deal of customer Christmas purchasing was occurring. Archer believes it has lost a significant amount of Christmas sales, from approximately 300 registered customers. Due to the nature of the site, Archer believes roughly 10 percent of its lost customers will return and continue to make purchases over the next several months.
Assume a registered customer remains active on Archer's site for approximately twenty months, and Archer has a five percent cost of capital. Determine the sales loss from the attack over a 20 -month period.
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For example: Total average sales per registered customer per visit....... Number of annual visits by registered customers Most commonly visited ..$75 .......6 page at the site........ ............antique books Number of monthly hits on the page........ Total registered customers. .8,675 980
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