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gavmur [86]
3 years ago
12

You are the owner of a smoothie shop in California. Afterhearing a podcast about customer relationship management (CRM), youdeci

de to gather more information regarding customer behavior inyour store to better understand the relationships that existbetween your business and your customers. CRM is a comprehensivebusiness model for increasing revenues and profits by focusing oncustomers.Customer Lifetime Value (CLV) is particularly importantwhen it comes to CRM and is often considered one of the mostcrucial metrics associated with a CRM system. Collecting data oncustomers and their relationships with a company (and commonlystoring it within a CRM system) helps make it possible to calculateCLV, or the total amount a customer will spend throughout theirrelationship with a company.
After a review and analysis of your customer data you are ableto determine the following information:
Average Value of Sales per Year per Customer: $120
Average Customer Retention Cost: $75
Customer Acquisition-oriented Marketing Expenses per Month:$1,000
Average Customer Retention Rate: 80%
You acquire an average of 25 new customers a month.
Use the following equations to help determine the CLV:
Average Customer Acquisition Cost = CustomerAcquisition-oriented Marketing Expenses per Month/Number of NewCustomers Acquired per Month
Customer Lifetime Value = [1/(1-Average Customer Retention Rate)] x(Average Value of Sales per Year per Customer)- (Average customerAcquisition Cost + Average Customer Retention Cost)
This activity is important because marketing managers need tounderstand and know how to calculate customer lifetime value as apart of customer relationship management. Knowledge of CLV caninform a number of critical marketing decisions related to suchfactors as the development of strategies designed to aid in theacquisition, nurturing, and retention of customers.
The goal of this exercise is to test your understanding of CLVby considering this example.
You must (1) complete the spreadsheet and (2) answer thequestions that follow to receive full credit for this exercise.
Business
1 answer:
Svetach [21]3 years ago
3 0

Answer:

Average Customer Retention rate = 80%  

Average Value of Sales per year per customer = $120  

Average customer acquisition cost = Customer acquisition oriented market expenses per month/  

number of new customers acquired per month  

=\frac{1000}{25} = 40  

Average customer retention cost = $75  

CLV =[1/(1- Average customer retention rate)] x (average value of sales per year per customer)-(average customer acquisition cost + average customer retention cost)  

= [1/(1-0.8)] x 120-(40+75)

=$485  

A) Average customer retention rate =90%  

B) Average value of sales per year per customer = $125  

C) Average customer acquisition cost =$60  

D) Average customer retention cost =$100  

CLV = [1/(1- Average customer retention rate)] x (average value of sales per year per customer)-(average customer acquisition cost + average customer retention cost)  

= [1/(1-0.9)] x 125 - (60+100)

E) Customer Lifetime Value = 1090

Explanation:

Here are the spreadsheets.

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Answer:

The answer is: $350,000

Explanation:

When Alin Co. establishes the total cost of the building it just purchased, it must include all of the following:

  • building's purchase value $300,000
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So the total cost of the building is $300,000 + $30,000 + $20,000 = $350,000

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Suppose that the pound is pegged to gold at £20 per ounce and the dollar is pegged to gold at $35 per ounce. This implies an exc
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Answer:

The exchange rate implies in exchange rate of $1.75 but current market exchange rate is $1.80 which means that the dollar is undervalued and pound is over valued in the market.

We will buy Dollar in the market and use these dollars to buy gold and then sell this gold in Euros

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Masterlink Co., in applying the lower of cost or market method, reports its inventory at net realizable value. Which of the foll
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4 0
3 years ago
Lindsey holt owns stock in the galloway gems company. she knows in advance that the dividend on this stock is a $1.50 per share.
solniwko [45]

According to the given statement Lindsey holt purchased preferred stock.

The correct option is B.

<h3>What is the preferred stock?</h3>

Preferred stock, which is a component of share capital and is commonly referred to as a combination indicator, is an asset that has any combination of features that common shares does not, such as those of an equity and a promissory note.

<h3>How do preferred stocks work?</h3>

securities with a repaired par value that pays dividends at a fixed rate, generally based on a proportion of the par value. The market price of preferred shares, like bonds, is dependent on changes in interest rates. When interest rates rise, the value of the preferred stock falls.

To know more about preferred stock visit:

brainly.com/question/15078323

#SPJ4

I understand that the question you are looking for is:

Lindsey Holt owns stock in the Galloway Gems Company. She knows in advance that the dividend on this stock is a $1.50 per share and that it is a promised or contractual and constant dividend . Given this, you know for sure that she purchased which type of stock?

A. Green chip

B. Preferred

C. Penny

D. Uncommon

E. Growth

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What is an example of statistical reasoning?
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Answer/Explanation:

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Statistical literacy is regarded as a key ability expected of citizens in information-laden societies, and is often touted as an expected outcome of schooling and as a necessary component of adults’ numeracy and literacy. Statistical literacy involves understanding and using the basic language and tools of statistics: knowing what basic statistical terms mean, understanding the use of simple statistical symbols, and recognizing and being able to interpret different representations of data (Garfield 1999; Rumsey 2002; Snell 1999)

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