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1. What is the value of a loyal customer (VLC) if the customer retention rate is 50 percent? Round your answer to the nearest cent. $ fill in the blank 2 2. What is the value of a loyal customer (VLC) if the customer retention rate increases to 75 percent? Round your answer to the nearest cent. $ fill in the blank 3 3. What is a 1 percent change in market share worth to the manufacturer if it represents 100,000 customers? Round your answers to the nearest dollar. 50 percent customer retention rate case: $ fill in the blank 4 75 percent customer retention rate case: $ fill in the blank 5 4. What do you conclude? If customer retention can be increased from 50 to 75 percent through better value chain performance, the economic payoff is

1. What is the value of a loyal customer (VLC) if the customer retention rate is 50 percent? Round your answer to the nearest cent. $ fill in the blank 2 2. What is the value of a loyal customer (VLC) if the customer retention rate increases to 75 percent? Round your answer to the nearest cent. $ fill in the blank 3 3. What is a 1 percent change in market share worth to the manufacturer if it represents 100,000 customers? Round your answers to the nearest dollar. 50 percent customer retention rate case: $ fill in the blank 4 75 percent customer retention rate case: $ fill in the blank 5 4. What do you conclude? If customer retention can be increased from 50 to 75 percent through better value chain performance, the economic payoff is

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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1. What is the value of a loyal customer (VLC) if the customer retention rate is 50 percent? Round your answer to the nearest cent.

$ fill in the blank 2

2. What is the value of a loyal customer (VLC) if the customer retention rate increases to 75 percent? Round your answer to the nearest cent.

$ fill in the blank 3

3. What is a 1 percent change in market share worth to the manufacturer if it represents 100,000 customers? Round your answers to the nearest dollar.

50 percent customer retention rate case: $ fill in the blank 4

75 percent customer retention rate case: $ fill in the blank 5

4. What do you conclude?

If customer retention can be increased from 50 to 75 percent through better value chain performance, the economic payoff is

1. What is the value of a loyal customer (VLC) if the customer retention rate is 50 percent? Round your answer to the nearest cent. $4 200 2. What is the value of a loyal customer (VLC) if the customer retention rate increases to 75 percent? Round your answer to the nearest cent. $ 3.00 X 3. What is a 1 percent change in market share worth to the manufacturer if it represents 100,000 customers? Round your answers to the nearest dollar. 50 percent customer retention rate case: $ 70 75 percent customer retention rate case: $ 45 4. What do you conclude? If customer retention can be increased from 50 to 75 percent through better value chain performance, the economic payoff is doubled
Transcribed Image Text:1. What is the value of a loyal customer (VLC) if the customer retention rate is 50 percent? Round your answer to the nearest cent. $4 200 2. What is the value of a loyal customer (VLC) if the customer retention rate increases to 75 percent? Round your answer to the nearest cent. $ 3.00 X 3. What is a 1 percent change in market share worth to the manufacturer if it represents 100,000 customers? Round your answers to the nearest dollar. 50 percent customer retention rate case: $ 70 75 percent customer retention rate case: $ 45 4. What do you conclude? If customer retention can be increased from 50 to 75 percent through better value chain performance, the economic payoff is doubled
A C D 1 Value of a Loyal Customer 2 Revenue per unit Percent contribution margin to profit and overhead Repurchase frequency (purchases/year) Customer retention rate 3 $100.00 4 50% 5 0.5 0.5 7 Number of customers representing 1 percent market share 100,000 8 Formulas 9 Buyer's life cycle #N/A 10 11 12 13 14 VLC #N/A Value of a 1 percent change in market share #N/A Customer retention rate 0.75 15 16 17 18 19 Buyer's life cycle #N/A VLC #N/A Value of a 1 percent change in market share #N/A
Transcribed Image Text:A C D 1 Value of a Loyal Customer 2 Revenue per unit Percent contribution margin to profit and overhead Repurchase frequency (purchases/year) Customer retention rate 3 $100.00 4 50% 5 0.5 0.5 7 Number of customers representing 1 percent market share 100,000 8 Formulas 9 Buyer's life cycle #N/A 10 11 12 13 14 VLC #N/A Value of a 1 percent change in market share #N/A Customer retention rate 0.75 15 16 17 18 19 Buyer's life cycle #N/A VLC #N/A Value of a 1 percent change in market share #N/A
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