Question
A company has 1 million customers with the following information Average monthly revenue: $60 Average monthly retention cost (including all costs of transaction): $30 Average
A company has 1 million customers with the following information
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Average monthly revenue: $60
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Average monthly retention cost (including all costs of transaction): $30
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Average acquisition cost: $400
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Average monthly defection rate: 3%
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Q3. If a new customer retention program (costing $10 per month) reduces its monthly defection rate from 3% to 2%, should its marketing director execute this new customer retention program or not?
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Extreme Financial Risks From Dependence To Risk Management
Authors: Yannick Malevergne, Didier Sornette
1st Edition
354027264X, 3540272666, 9783540272649, 9783540272663
