Microsoft Excel 2016 Data Analysis and Business Modeling

Chapter 80. Determining customer value

Questions answered in this chapter:

A credit-card company currently has an 80 percent retention rate. How will the company’s profitability improve if the retention rate increases to 90 percent or higher?

A long-distance phone company gives the competition’s customers an incentive to switch. How large of an incentive should it give?

Many companies undervalue their customers. When valuing a customer, a company should look at the net present value (NPV) of the long-term profits that the company earns from the ...