A$.$ How would the average customer profitability change with $25$ percent loyal and $25$ 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

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