Question
During the past year, a New York-based computer service company spent $1,400,000 million to acquire 64,800 new customers. Of the 154,890 customers they had at
During the past year, a New York-based computer service company spent $1,400,000 million to acquire 64,800 new customers. Of the 154,890 customers they had at the beginning of the year, only 87,957 remained at the end of the year, despite spending $500,000 during the year in attempts to retain the 154,890 customers.
1. What is the total average acquisition cost per new customer?
2. What is the total average retention cost?
3. Please explain the relationship between the company's customer acquisition strategy and its customer retention strategy.
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