Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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- CLV = Profit per year X Number of years as a customer (lifetime) less customer acquisition costs And we can use the churn rate % to tell us how many years our average customer stay by dividing 1/churn rate. In our case that is 1/20% = 5 years = customer lifetime. A supermarket chain ran a social media campaign and they got 2,000 new customers. The TOTAL cost of the campaign was $250,000. These customers visited the supermarket 25 times a year. Each customer spends $100 per visit and the supermarket makes a 4% profit margin on the customer’s spend. The retention rate of the customers is 60%. What is their CLV? Assume that the profit margin is based on the customer’s non-discounted spend, then deduct the discount.arrow_forwardI need answer typing clear urjent no chatgpt used i will give upvotes full explantion plsarrow_forwardWhich of the following ratios is INCORRECTLY defined? Seleccione una: a. TIE= EBIT/InterestExpense b. ROE=NetIncome/Equity c. Sales Growth=Sales-PreviousSales/PreviousSales d. Days Inventory= Inventory/AverageDailyCostOfGoodsSold e. ROA=(NetIncome+InterestExpense)/Assetsarrow_forward
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