Calculate the Economic Value of a Loyal Customer for a Company

question 3

Essay

Calculate the economic value of a loyal customer for a company given that the customer purchases, on an average, worth $43 per visit and comes three times a year. The company's gross profit margin is 35 per cent with a customer defection rate of 0.4.

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Definitions:

Subjective Perceptions

Individual experiences or interpretations of reality, which may not necessarily align with objective measures.

Treatment and Hospitalization

Refers to the medical care and procedures provided to a patient in a hospital or healthcare setting for the purpose of managing or curing health conditions.

Visibility of Symptoms

The extent to which symptoms of a condition or disease are observable or noticeable to others.

Daily Functioning

An individual's ability to perform normal daily activities such as working, studying, sleeping, and socializing effectively.