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Would improving customer service be of significant financial benefit to CVS? (10 points) Hint: using the information provided in the case, calculate the following which are not directly available from the case.

1. The number of defecting customers in 2000 who were light users vs. heavy users, respectively.
2. The volume of prescriptions lost annually due to light vs. heavy defectors, respectively.

3. Total prescriptions filled annually by CVS pharmacy.
4. Average revenue per prescription.
5. Total annual lost revenues due to defectors.
6. Revenue improvement from 60% reduction (Page 3) in defection rate.
7. Improvement to CVS's revenue growth rate from 60% reduction (Page 3) in defection rate.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9948690

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