A . How would the average customer profitability change with 2 5 percent loyal and 2 5
Fantastic news! We've Found the answer you've been seeking!
Question:
A How would the average customer profitability change with percent loyal and percent repeat customers?
Transcribed Image Text:
FIGUREB1-17 CUSTOMER LOYALTY AND CUSTOMER PROFITABILITY Customer Loyalty Percent Customer Percent Classification Scores Customers Revenue Margin Loyal Repeat Captive New Unprofitable Total/Average Average Profit per Customer 70 to 100 50 to 90 20 to 40 0 to 60 0 to 40 $400 $350 $300 $250 $200 $150 $100 $50 $0 -$50 T 1 1 1 1 20% 30% 10% 20% 20% 100% $1,000 50% $750 40% $600 40% $400 30% $100 30% $585 38% Mktg. & Sales Exp. per Customer $100 $75 $75 $100 $50 Average Customer Profit: $164 $80 Unprofitable New Captive Repeat Customers Customers Customers Customers Average Customer Profit $400 $225 $165 $20 -$20 $164 Loyal Customers FIGUREB1-17 CUSTOMER LOYALTY AND CUSTOMER PROFITABILITY Customer Loyalty Percent Customer Percent Classification Scores Customers Revenue Margin Loyal Repeat Captive New Unprofitable Total/Average Average Profit per Customer 70 to 100 50 to 90 20 to 40 0 to 60 0 to 40 $400 $350 $300 $250 $200 $150 $100 $50 $0 -$50 T 1 1 1 1 20% 30% 10% 20% 20% 100% $1,000 50% $750 40% $600 40% $400 30% $100 30% $585 38% Mktg. & Sales Exp. per Customer $100 $75 $75 $100 $50 Average Customer Profit: $164 $80 Unprofitable New Captive Repeat Customers Customers Customers Customers Average Customer Profit $400 $225 $165 $20 -$20 $164 Loyal Customers
Expert Answer:
Answer rating: 100% (QA)
To answer your question we need to calculate the average customer profitability based on the given p... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
Posted Date:
Students also viewed these general management questions
-
Multinational oil company ExxonMobil faced many challenges related to climate change. Climate change is taking place because of the greenhouse effect. When solar radiation passes through the...
-
On April 1, Pujols, Inc., exchanges $601,600 for 70 percent of the outstanding stock of Ramirez Corporation. The remaining 30 percent of the outstanding shares continued to trade at a collective fair...
-
The following two graphics represent the number of reported shark attacks and fatalities worldwide since 1900. Write a report about the trends in the graphs. In your report discuss the apparent...
-
For each polynomial function, find (a) (-1), (b) (2), and (c) (0). f(x) = 2x - 4x + 1
-
Optical Products Company reported the following shareholders' equity on its balance sheet: Requirements 1. What caused Optical Products' preferred shares to decrease during 2014? Cite all the...
-
Describe the fault tree analysis for the flash light that doesn't work . You will be responsible for the same number of fault trees as people in your group. For example, if you are working alone, you...
-
Name three common types of responsibility centers for decentralized operations.
-
Morgan Companys balance sheet at December 31, 2013, is presented below. During January 2014, the following transactions occurred. (Morgan Company uses the perpetual inventory system.) 1. Morgan paid...
-
you have been called as an expert witness at a trial. Much of the evidence of the trail has been based on eyewitness accounts. For this discussion, present what you would relate to the jury regarding...
-
A house with a total living area of 2,500 square feet would cost $110 per square foot to reproduce new. It has an expected economic life of 50 years and is estimated to have an effective age of five...
-
could you please explain the risk assessment process in detail adressing the following points Address all business-critical operations - Identify risks - Prioritizing risks - Risk Impact/Probability...
-
The Anubis Shoppe has net working capital of $ 6 , 4 0 0 . The current portion of the long - term debt is valued at $ 1 , 1 0 0 . Anubis also has a long - term debt of $ 1 1 , 7 0 0 , and owners'...
-
Formation of a Peptide Bond Amino acids are assembled into proteins during protein synthesis or translation. Peptide bonds are formed between the amino group of one amino acid and the acid group of...
-
Use the case study "Shifting the diversity climate: the Sodexo solution" elaborate on: 1- Internal and External forces (SWOT analysis) 2-Analysis tools ( VRIO & Porter's five forces) 3- Alternatives...
-
Why is it important before making decisions to know the price preferred by customers when making purchases? What happens when you make price decisions that are above the price range? How does this...
-
On 1/1/2022, Morar Inc purchases equipment, promising to pay $30,000 on 12/31/2025. The seller is financing the purchase. If Morar Inc pursued a loan instead to purchase the equipment, the interest...
-
In a multipath fading channel, the respective times of arrival of signal over the earliest significant multipath component and the last multipath components is modelled by a distribution function...
-
You are standing at x = 9.0 km and your assistant is standing at x = 3.0 km. Lightning bolt 1 strikes at x = 0 km and lightning bolt 2 strikes at x = 12.0 km. You see the flash from bolt 2 at t = 10...
-
Leader Automotive Canada is a Tier 1 supplier in the automotive industry (direct supplier to car assemblies), an industry that is considered the most competitive in the manufacturing sector. A couple...
-
Coakwell Company worked on only two jobs during May. Information on the jobs is given below: At the beginning of the year, annual manufacturing overhead (MOH) was budgeted at $3,780,000 and Coakwell...
-
Destin Products uses a job-costing system with two direct cost categories (direct materials and direct manufacturing labour) and one manufacturing overhead cost pool. Destin allocates manufacturing...
-
Stanford Corporation began the year with 150,000 shares of common stock outstanding. On March 1, an additional 10,000 shares of common stock were issued. On August 1, another 16,000 shares of common...
-
The following summarized data relate to Robert Corporation's current operations: Required Prepare a multiple-step income statement for Robert Corporation for the year. Include earnings per share...
-
Net sales, net income, and total asset figures for Janice Controls, Inc., for five consecutive years are given below (Janice manufactures pollution controls): Required a. Calculate trend percentages,...
Study smarter with the SolutionInn App