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Estimate the NMC if customer retention rate was increased from 70% to 85% Lost Customers Overall Performance (DE 30,000 70% Customer Retention Sales and Profit
Estimate the NMC if customer retention rate was increased from 70% to 85% Lost Customers Overall Performance (DE 30,000 70% Customer Retention Sales and Profit Performance Sales (millions) Revenue per Customer Sales (millions) Percent Margin Gross Profit (millions) Marketing & Sales Expenses per Customer Marketing & Sales Expenses millions) Net Marketing Contribution millions) Other Expenses million) Profit Before Tax Pre Tax Return on Sales Retained Customers 70,000 $1,000 $70,0 455 $315 5100.00 57.0 524.5 Estimate the NMC if costs could be lowered to increase the profit margin from 42% to 65% New Customers 30,000 5500 $15.0 30% 54.5 S500,00 515.0 -510.5 59.0 355 53.2 550.00 515 51.7 100,000 $940.0 5940 42% 5392 5180.77 $23.5 $15.7 $10,0 557 6.05 Estimate the Profit before Tax if marketing and sales expenses per customer had to be increased from $180.77 to $200 due to higher competition Discuss how the firm could address these issues
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