MGMA01H3 Chapter 6: Chapter 6

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Here are some answers: customers do not care about your system. They care about satisfaction; having problems handled: customers do not care how you track his order. They don"t care about how you execute, but that it gets done. Lifetime-customer value (lcv: total customer satisfaction leads to customer loyalty and a focus on existing customer loyalty can generate spectacular gains. The value of customers: a totally satisfied customers contributes 2. 6 times as much revenue to a company as a. Somewhat satisfied customer: a totally satisfied customer contributes 14 times as much revenue as a somewhat. Dissatisfied customer: a totally dissatisfied customer actually decreases revenue at a rate equal to 1. 8 times what a. example: an average driver buys ten cars in lifetime. You sell a young woman her first car for profit of , your lcv of that customer is potentially. Assume the loyal customer will recommend your business to 5 others.

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