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After tabulating the first two results, you begin to analyze the third component of ideal customers: the Payback Period. This is the duration of time
After tabulating the first two results, you begin to analyze the third component of ideal customers: the Payback Period. This is the duration of time needed for an investment to retrieve its initial expense in terms of profits or savings. It is calculated by dividing the Customer Acquisition Cost by the product of the monthly sales to a certain customer, multiplied by the gross profit percentage.
tableABCDCustomer Acquisition Cost,tableMonthly Sales to aCustomerCross Profit Percentage,Payback Period
What is the Payback Period for the first group?
months
month
months
months
What is the Payback Period for the second group?
months
months
months
months
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