Respuesta :
Answer:
$792
Explanation:
Average value of a loyal customer can be calculated in following manner -
The value of a loyal customer (VLC) = P × (RF) × (CM) × (BLC)
Where,
P is the revenue per unit or average cost = $1,500
RF is the repurchase frequency or number of purchases per year = 1/3
= 0.33
CM is contribution margin to profit = 40% or 0.40
BLC is buyer’s life cycle = 1 ÷ (1 - customer’s retention rate)
= 1 ÷ (1 - 75%)
= 1 ÷ (1 - 0.75)
= 4 years
Therefore,
The value of a loyal customer (VLC):
= P × (RF) × (CM) × (BLC)
= $1,500 × (0.33) × (0.40 ) × (4)
= $792
The average value for the loyal customer would be $792.
What is the customer retention rate?
Customer retention rate is the proportion of existing customers who continue customers after a given period. Your customer keeping rate can help you amended understand what keeps customers with your company, and can also signal opportunities to amend customer service.
Computation of average value of loyal customer:
Given that,
Consumer Retention Rate(CRR)= 75%,
Contribution margin to profit(CMP)= 40%,
Average cost(AC)= $1,500
Repurchase Frequency(RF) =0.33.
Buyer's life cycle (BLC):
[tex]\text{BLC}=\dfrac{1}{1-\text{CRR}}\\\\\text{BLC}=\dfrac{1}{1-\text{75\%}}\\\\\text{BLC}=4 \text{Years}.\\[/tex]
The Value of Loyal Customer(VLC) = ?
Formula for VLC:
[tex]\text{VLC} = \text{AC}\times{\text{RF}}\times{\text{CM}}\times{\text{BLC}}[/tex]
Then the value of VLC after applying the above values in the formula:
[tex]\text{VLC} = \text{AC}\times{\text{RF}}\times{\text{CM}}\times{\text{BLC}}\\\\\text{VLC} = \text{\$1,500}\times{\text{(0.33)}}\times{\text{(0.40)}}\times{\text{(4)}}\\\\\text{VLC} =\$792.\\[/tex]
Therefore, the value of a loyal customer would be $729.
Learn more about rates, refer:
https://brainly.com/question/25565101
