Exam 5: Customer Relationships and Customer Service

-Using a discount rate of 11% and treating the average annual sales as annuities, what would the average profit margin have to be for Customer B to have a customer lifetime value equal $300,000?

Pipe manufacturer Goodmonth sells corrugated iron pipes to plumbing companies at the Northeast Ohio region. Recently, Goodmonth initiated ranking their customers based on their expected lifetime probability for Goodmonth's various customer relationship initiatives. Two of their customers are shown below. -Based on the calculation of lifetime value in Questions 26 and 27, which customer is more important?

Pipe manufacturer Goodmonth sells corrugated iron pipes to plumbing companies at the Northeast Ohio region. Recently, Goodmonth initiated ranking their customers based on their expected lifetime probability for Goodmonth's various customer relationship initiatives. Two of their customers are shown below. -Using a discount rate of 14% and treating the average annual sales as annuities, calculate the present value of NoWorries' lifetime value.

-Based on the calculation of lifetime value in Questions 17 and 18, which customer is more important?

Lafayette Landscaping Company sells mulch to local businesses and residential customers. Lafayette has decided to begin calculating the expected lifetime profitability of each of their premier customers in order to design marketing promotions. Their top-three customers have the following characteristics: -Using a discount rate of 8% and treating the average annual sales as annuities, calculate the present value of Symbiosis's lifetime value.

Find out the customer lifetime value using the following information and a discount rate of 5%. Average Annual Sales = $61,000 (treat the average sales as annuity) Average Profit Margin = 9% Expected Lifetime in Years = 9

-Based on the calculation of lifetime value in Questions 20 and 21, which customer is more important?

-Using a discount rate of 15% and treating the average annual sales as annuities, calculate the present value of Customer Two's lifetime value.

-Using a discount rate of 10% and treating the average annual sales as annuities, calculate the present value of Customer Two's lifetime value.

Pipe manufacturer Goodmonth sells corrugated iron pipes to plumbing companies at the Northeast Ohio region. Recently, Goodmonth initiated ranking their customers based on their expected lifetime probability for Goodmonth's various customer relationship initiatives. Two of their customers are shown below. -Using a discount rate of 11% and treating the average annual sales as annuities, calculate the present value of NoWorries' lifetime value.

Lafayette Landscaping Company sells mulch to local businesses and residential customers. Lafayette has decided to begin calculating the expected lifetime profitability of each of their premier customers in order to design marketing promotions. Their top-three customers have the following characteristics: -Using a discount rate of 13% and treating the average annual sales as annuities, calculate the present value of Symbiosis's lifetime value.

Lafayette Landscaping Company sells mulch to local businesses and residential customers. Lafayette has decided to begin calculating the expected lifetime profitability of each of their premier customers in order to design marketing promotions. Their top-three customers have the following characteristics: -Based on the calculation of lifetime value in Questions 35, 36, and 37, which customer should be preferred?

Find out the customer lifetime value using the following information and a discount rate of 9%. Average Annual Sales = $327,500 (treat the average sales as annuity) Average Profit Margin = 21% Expected Lifetime in Years = 22

Lafayette Landscaping Company sells mulch to local businesses and residential customers. Lafayette has decided to begin calculating the expected lifetime profitability of each of their premier customers in order to design marketing promotions. Their top-three customers have the following characteristics: -Based on the calculation of lifetime value in Questions 43, 44, and 45, which customer should be preferred?

Find out the customer lifetime value using the following information and a discount rate of 12%. Average Annual Sales = $119,025 (treat the average sales as annuity) Average Profit Margin = 11% Expected Lifetime in Years = 8

-Using a discount rate of 11% and treating the average annual sales as annuities, calculate the present value of Customer A's lifetime value.

-Based on the calculation of lifetime value in Questions 23 and 24, which customer is more important?

Lafayette Landscaping Company sells mulch to local businesses and residential customers. Lafayette has decided to begin calculating the expected lifetime profitability of each of their premier customers in order to design marketing promotions. Their top-three customers have the following characteristics: -Using a discount rate of 9% and treating the average annual sales as annuities, calculate the present value of Rubicon's lifetime value.

Lafayette Landscaping Company sells mulch to local businesses and residential customers. Lafayette has decided to begin calculating the expected lifetime profitability of each of their premier customers in order to design marketing promotions. Their top-three customers have the following characteristics: -Using a discount rate of 9% and treating the average annual sales as annuities, calculate the present value of Amherst's lifetime value.

Lafayette Landscaping Company sells mulch to local businesses and residential customers. Lafayette has decided to begin calculating the expected lifetime profitability of each of their premier customers in order to design marketing promotions. Their top-three customers have the following characteristics: -Using a discount rate of 13% and treating the average annual sales as annuities, calculate the present value of Amherst's lifetime value.