A famous hotel has studied the LTV of business travelers in the Fall season.

They have found it to be $5000 over a horizon of 10 years. There are two main causes for alienating these customers which can be repaired by spending $100,000 per year. How many alienated customers will have to be avoided (per year) to make this expenditure sensible? Does this result surprise?

Explain what is meant by “Innovations to Restore Loyalty.”