MKT 300 Chapter Notes - Chapter 5: Discount Window
14 Jan 2016
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Customer counts: the number of customers of a firm for a specified. Recency: the length of time since a customer"s last purchase: a six month customer is someone who purchased from the firm. Retention rate: the ratio of the number of retained customers to the at least once within the last six months number at risk. In contractual situations, it makes sense to talk about the number of customers currently under contract and the percentage retained when the contract period runs out. In non-contractual situations (catalog sales), it makes sense to count the number of customers of a specified recency. Customer profit (cp): profit the firm makes from serving a customer or customer group over a specified period of time. Customer profitability: the difference between the revenues earned from and the costs associated with the customer relationship during a specified period. When margins and retention rates are constant, clv can be calculated long term health of their customer relationships as:
