Excel Online Activity: VLC Assume that a customer in the small contractor target market segment buys...
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Excel Online Activity: VLC Assume that a customer in the small contractor target market segment buys an electric drill on average every two years (or every 0.5 year) for $100, when the gross margin on the drill averages 30 percent. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Questions 1. What is the value of a loyal customer (VLC) if the customer retention rate is 20 percent? Round your answer to the nearest cent.. $ 2. What is the value of a loyal customer (VLC) if the customer retention rate increases to 80 percent? Round your answer to the nearest cent. $ 3. What is a 1 percent change in market share worth to the manufacturer if it represents 150,000 customers? Round your answers to the nearest dollar. 20 percent customer retention rate case: $ 80 percent customer retention rate case: $ 4. What do you conclude? If customer retention can be increased from 20 to 80 percent through better value chain performance, the economic payoff is quadrupled Check My Work Reset Problem 3 3 Value of a Loyal Customer 0 11 12 13 14 HESABARAN 15 16 17 18 19 20 21 22 23 24 A Revenue per unit Percent contribution margin to profit and overhead Repurchase frequency (purchases/year) Customer retention rate Number of customers representing 1 percent market share Buyer's life cycle VLC Value of a 1 percent change in market share Customer retention rate Buyer's life cycle VLC Value of a 1 percent change in market share B $100.00 30% 0.5 0.2 150,000 0.8 C D Formulas #N/A #N/A #N/A #N/A #N/A #N/A LLI E Excel Online Activity: VLC Assume that a customer in the small contractor target market segment buys an electric drill on average every two years (or every 0.5 year) for $100, when the gross margin on the drill averages 30 percent. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Questions 1. What is the value of a loyal customer (VLC) if the customer retention rate is 20 percent? Round your answer to the nearest cent.. $ 2. What is the value of a loyal customer (VLC) if the customer retention rate increases to 80 percent? Round your answer to the nearest cent. $ 3. What is a 1 percent change in market share worth to the manufacturer if it represents 150,000 customers? Round your answers to the nearest dollar. 20 percent customer retention rate case: $ 80 percent customer retention rate case: $ 4. What do you conclude? If customer retention can be increased from 20 to 80 percent through better value chain performance, the economic payoff is quadrupled Check My Work Reset Problem 3 3 Value of a Loyal Customer 0 11 12 13 14 HESABARAN 15 16 17 18 19 20 21 22 23 24 A Revenue per unit Percent contribution margin to profit and overhead Repurchase frequency (purchases/year) Customer retention rate Number of customers representing 1 percent market share Buyer's life cycle VLC Value of a 1 percent change in market share Customer retention rate Buyer's life cycle VLC Value of a 1 percent change in market share B $100.00 30% 0.5 0.2 150,000 0.8 C D Formulas #N/A #N/A #N/A #N/A #N/A #N/A LLI E
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Answer rating: 100% (QA)
Here as per the available data Repurchase frequency RF 05 Revenue per unit P 150 Gross margin CM 30 ... View the full answer
Related Book For
Basic Business Statistics Concepts and Applications
ISBN: 978-0132168380
12th edition
Authors: Mark L. Berenson, David M. Levine, Timothy C. Krehbiel
Posted Date:
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