Question: A regional electrical distributor currently has 1 , 0 0 0 customers who buy an average of $ 5 , 0 0 0 per year,
A regional electrical distributor currently has customers who buy an average of $ per year, generating a margin. From experience, the company knows that of its customers will not return the next year and it takes an average of $ to acquire each new customer. Given the choice of investing $ in a new customer acquisition program for additional customers or investing $ in a new retention program which would take the rate of retention from to what should the company do
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
