Question
What is the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $65 per visit, the
What is the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $65 per visit, the frequency of repurchase is every month, the contribution margin is 21%, and the average customer defection rate is 22%? If a continuous improvement goal is set of a 18% defection rate next year and 14% two years from now, what are the revised VLCs over their average buying life? Do not round intermediate calculations. Round your answers to the nearest dollar.
For defection rate = 22%, VLC = $
For defection rate = 18%, VLC = $
For defection rate = 14%, VLC = $
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