Calculate the Economic Value of a Loyal Customer for a Company

question 19

Essay

Calculate the economic value of a loyal customer for a company given that the customer purchases, on an average, worth $43worth 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:

Metallic Jewelry

Decorative objects made from metals like gold, silver, and platinum, worn for personal adornment.

Magnetic Resonance Imaging

A non-invasive imaging technology that uses magnetic fields and radio waves to create detailed images of the organs and tissues within the body.

Narcotic Pain Medication

Drugs derived from opium or synthetic opiates used to treat moderate to severe pain by altering the brain’s perception of pain.

Barium Enema

A diagnostic test where barium sulfate is used to fill and coat the inside of the colon and rectum for clear X-ray images.