Consider a telecommunication service provider. You have the following quarterly data: STATISTICS TYPICAL CONSUMER Number of referrals
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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 (Mty) | $30 |
Average gross margin (Aty) | $78 |
Cost of referral (aty) | $15 |
Acquisition cost savings (ACQ1ty and ACQ2ty) | $10 |
Yearly discount rate (r) | 15% |
Calculate CRV of a typical customer for one year (over 4 quarters).
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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