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According to a study by Bain & Company, increasing customer retention rates by just 5% increases profits by 25% to 95%. What's more, 82% of

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According to a study by Bain & Company, increasing customer retention rates by just 5% increases profits by 25% to 95%. What's more, 82% of companies agree that retention is cheaper to execute than acquisition, according to an e-Consultancy report released last month. For a firm with a recurring gross or contribution margin per customer of $99 per month and a current retention rate of 80% per year, by what percentage does gross margin increase for a 7% increase in customer retention? You may assume a 10% discount rate

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