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Microsoft Excel Data Analysis and Business Modeling (Office 2021 and Microsoft 365), 7th Edition
book

Microsoft Excel Data Analysis and Business Modeling (Office 2021 and Microsoft 365), 7th Edition

by Wayne Winston
December 2021
Beginner to intermediate
1168 pages
30h 17m
English
Microsoft Press
Content preview from Microsoft Excel Data Analysis and Business Modeling (Office 2021 and Microsoft 365), 7th Edition

Chapter 85

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 cell phone company wants to give the competition’s customers an incentive to switch. How large 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 customer. (For detailed information about NPV, see Chapter 8, “The net present value functions: NPV and XNPV.”) Failure to look at the long-term value of a customer often causes a company to make poor decisions. ...

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Publisher Resources

ISBN: 9780137613816