Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use the Excel template VLC to find the average value of a loyal customer (VLC) in a target market segment if the average purchase price
Use the Excel template VLC to find the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $75 per visit, the frequency of repurchase is five times per year, the contribution margin is 15 percent, and the average customer defection rate is 20 percent? Round your answer to the nearest dollar.
Enter data only in yellow cells. Not for commercial use. \begin{tabular}{r|r|} \hline Revenue per unit & $100.00 \\ \cline { 2 - 3 } Percent contribution margin to profit and overhead & 50.0% \\ \cline { 2 - 3 } Repurchase frequency (purchases/year) & 0.25 \\ & 0.4 \\ \hline Defection rate & \\ \hline Buyer's life cycle & 2.50 \\ \cline { 2 - 2 } & $31.25 \\ \hline \end{tabular}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