Answered step by step
Verified Expert Solution
Question
1 Approved Answer
From a survey a company has determined that 24% of its customers are classified as advocates , 60% as passives and the remainder as detractors
From a survey a company has determined that 24% of its customers are classified as "advocates", 60% as "passives" and the remainder as "detractors".
Research suggests that during a year 10% of the advocates will be lost to a competitor, whilst the percentages for passives and detractors are 15% and 30% respectively.
Accountants have determined that the company loses $1000 of revenue for every advocate it loses, and $800 per years for other customers.
- What proportion of customers will be lost to a competitor during a year?
- If a customer is lost to a competitor during a year, what is the probability they were a detractor. Show your working.
- What is the average lost revenue per customer per year associated with customers leaving? (NB Remember to include customers who don't leave in your calculations.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started