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Describe the ideal Starbucks customer from a profitability standpoint using the information from Exhibit 9. How valuable is a highly satisfied customer to Starbucks (versus
Describe the ideal Starbucks customer from a profitability standpoint using the information from Exhibit 9. How valuable is a highly satisfied customer to Starbucks (versus the satisfied and unsatisfied customer groups)? You should calculate: 1) the difference between the yearly revenue provided by each group; 2) the average customer life revenue provided by each group; and, 3) the difference between the customer life revenue provided by each group.
Unsatified Customers | Satisfied Customers | Highly Satisfied Customers | |
Number of Starbucks Visits/Month | 3.9 | 4.3 | 7.2 |
Average Ticket Size/Visit | $3.88 | $4.06 | $4.42 |
Average Customer Life (years) | 1.1 | 4.4 | 8.3 |
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