Question: Use the Excel template VLC to find the average value of a loyal customer (VLC) in a target market segment if the average purchase price
Use the Excel template VLC to find the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $75 per visit, the frequency of repurchase is five times per year, the contribution margin is 15 percent, and the average customer defection rate is 20 percent? Round your answer to the nearest dollar.
Enter data only in yellow cells. Not for commercial use. \begin{tabular}{r|r|} \hline Revenue per unit & $100.00 \\ \cline { 2 - 3 } Percent contribution margin to profit and overhead & 50.0% \\ \cline { 2 - 3 } Repurchase frequency (purchases/year) & 0.25 \\ & 0.4 \\ \hline Defection rate & \\ \hline Buyer's life cycle & 2.50 \\ \cline { 2 - 2 } & $31.25 \\ \hline \end{tabular}
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