Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6-24, Customer Lifetime Value Compute the customer lifetime value for Customer 421 based on the data below for the first three years of the customer

image text in transcribed

6-24, Customer Lifetime Value Compute the customer lifetime value for Customer 421 based on the data below for the first three years of the customer relationship. Costs were incurred to promote customer retention to a rate of .8 in years 1 through 3. Round to two decimals for all calculations. CLV-[(M.-c.) X (rat-1-initial A Acquisition Cost Initial acquisition cost n number of years retained r retention rate for each of then 300 0.8 ears retained Cost of capital M,-margin from customer in year t 0.1 $250 300 325 ct additional costs-to-serve and retain customer in year t $60 $50 S50 Customer Lifetime Value (2-pts) 6-25 Net Promoter Score Stan's, a department store chain, has conducted a survey to collect data on customer satisfaction and perception of its merchandise and service. Data for responses to the question, "How likely is it that you would recommend Stan's to a friend or colleague?" appear below: Score Number of Responses 10 641 1,265 1,254 228 548 493 357 63 42 109 5,000 TOTAL What is Stan's net promoter score (round all calculations to two decimals)? (2-pts) 6-24, Customer Lifetime Value Compute the customer lifetime value for Customer 421 based on the data below for the first three years of the customer relationship. Costs were incurred to promote customer retention to a rate of .8 in years 1 through 3. Round to two decimals for all calculations. CLV-[(M.-c.) X (rat-1-initial A Acquisition Cost Initial acquisition cost n number of years retained r retention rate for each of then 300 0.8 ears retained Cost of capital M,-margin from customer in year t 0.1 $250 300 325 ct additional costs-to-serve and retain customer in year t $60 $50 S50 Customer Lifetime Value (2-pts) 6-25 Net Promoter Score Stan's, a department store chain, has conducted a survey to collect data on customer satisfaction and perception of its merchandise and service. Data for responses to the question, "How likely is it that you would recommend Stan's to a friend or colleague?" appear below: Score Number of Responses 10 641 1,265 1,254 228 548 493 357 63 42 109 5,000 TOTAL What is Stan's net promoter score (round all calculations to two decimals)? (2-pts)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cases In Auditing

Authors: Josephine Maltby

2nd Edition

1853963127, 978-1853963124

More Books

Students also viewed these Accounting questions