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Eastern Motors Auto Dealership wanted to estimate the average CLV over a 5 year time horizon of a customer who purchases a new vehicle. The
Eastern Motors Auto Dealership wanted to estimate the average CLV over a year time horizon of a customer who purchases a new vehicle. The average vehicle sells for $ and has a margin of Based on historical averages, of people buying a new vehicle at Eastern will return for service times over the next years. Though it varies considerably, Eastern generates approximately $ in margin on each service visit after accounting for parts and direct labor costs.
What would be the value of a service loyalty program that increased the average number of visits by over years and increased the probability that a new vehicle purchaser would return for service by percentage points eg from to on a per customer basis?
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