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  3. 2 pick a continuous service provider you are a customer...

Question: 2 pick a continuous service provider you are a customer...

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2. Pick a continuous service provider you are a customer of (e.g., Netflix, Verizon, etc.). a. Estimate the average consumers life-time value. Hint: Consider yourself a typical customer in the segment for which you do the analysis so use your monthly bill to estimate the revenue; find out what the companys gross margin is (search online) in order to get the margin; you will most likely find information online about their retention rate (if not, use industry average). b. Consider the estimate from (a.) as the typical (average) consumer for your firm (ignore B2B customers). What do you estimate the firms customer equity to be? How does it compare to the firms market value?

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