A cable company spends on average S600 to acquire a customer. Annual maintenance costs per customer-$45; record-keeping and billing costs basic service package-$30 per month. Typically, 40 percent of customers buy a premium package-$50 per month; 10 percent buy the superpremium package- $80 per month. The average discount rate provided to each customer is 12%. Over time, 80 percent of customers remain with the company from one year to the next. $30 per customer per annum. Price of a - 1. What is the average CLV for all customers?
A cable company spends on average S600 to acquire a customer. Annual maintenance costs per customer-$45; record-keeping and billing costs basic service package-$30 per month. Typically, 40 percent of customers buy a premium package-$50 per month; 10 percent buy the superpremium package- $80 per month. The average discount rate provided to each customer is 12%. Over time, 80 percent of customers remain with the company from one year to the next. $30 per customer per annum. Price of a - 1. What is the average CLV for all customers?
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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