Consider a telecommunication service provider. You have the following quarterly data: STATISTICSTYPICAL CONSUMERNumber of referrals per period (n=n1+ n2)5of which, customers that joined due to the referral (n1)3of which, customers that would have joined anyway (n2)2Marketing cost per period (Mty)$30Average gross margin (Aty)$78Cost of referral (aty)$15Acquisition cost savings (ACQ1ty and ACQ2ty)$10Yearly discount rate (r)15%Calculate CRV of a typical customer for one year (over 4 quarters).

Referrals- In this method of prospecting, the salespeople come in contact with their known ones like…

Answered: Consider a telecommunication service…

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Question

Consider a telecommunication service provider. You have the following quarterly data:

STATISTICS	TYPICAL CONSUMER
Number of referrals per period (n=n1+ n2)	5
of which, customers that joined due to the referral (n1)	3
of which, customers that would have joined anyway (n2)	2
Marketing cost per period (M_ty)	$30
Average gross margin (A_ty)	$78
Cost of referral (a_ty)	$15
Acquisition cost savings (ACQ1_ty and ACQ2_ty)	$10
Yearly discount rate (r)	15%