Excel Online Activity: VLC

Open spreadsheet

Questions

What is the value of a loyal customer $($VLC$)$ if the customer retention rate is $20$ percent? Round your answer to the nearest cent.

$

What is the value of a loyal customer $($VLC$)$ if the customer retention rate increases to $80$ percent? Round your answer to the nearest cent.

$

What is a $1$ percent change in market share worth to the manufacturer if it represents $150,000$ customers? Round your answers to the nearest dollar.

$20$ percent customer retention rate case: $

$80$ percent customer retention rate case: $

What do you conclude?

If customer retention can be increased from $20$ to $80$ percent through better value chain performance, the economic payoff is