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Illustrate what is the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $50 per visit, the frequency of repurchase is 12 times per year, the contribution margin is 10 percent, and the average customer defection rate is 25 percent? If a continuous improvement goal is set of a 20 percent defection rate next year and 15 percent two years from now, what are the revised VLCs over their average buying life?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9272265

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