Question

In: Operations Management

Using his TightWad(R) database, Stu's MileageMiser has developed a new GPS based service to certify drivers...

Using his TightWad(R) database, Stu's MileageMiser has developed a new GPS based service to certify drivers for insurance discounts. He tracks their speeds, locations, and braking activity and delivers reports to insurance companies. January 1, 2009 he had 10,000 paying customers. Of that group, a year later, 9,900 were still customers. He spent $24,000 on programs designed to keep current customers happy and $45,000 on marketing to acquire new customers. His total number of customers on January 1, 2010 was 14,000. His revenue per customer is $55 per year and variable costs before marketing per customer are $5 per year.

e) What is Stu's annual churn rate? What is the retention rate?

Solutions

Expert Solution

Stu's retention rate = customers retained over time / initial customers at the beginning of period

= 9900/10000 =99%

Churn rate = customers left / initial customers = 10000-9900/10000 =1%


Related Solutions

Using your downloaded DBMS (MS SQL Server), create a new database. Create the database tables based...
Using your downloaded DBMS (MS SQL Server), create a new database. Create the database tables based on your entities defining The attributes within each table The primary and foreign keys within each table *****Show your database tables, tables attributes, primary and foreign keys***** Do not forget to check the lesson slides and videos that show you how to convert an ER/EER into a database schema, and how to create a database and tables using MS SQL Server.
Consider a startup that has developed an innovative solution based on new technology that it is...
Consider a startup that has developed an innovative solution based on new technology that it is the basis for a new venture that it has launched. Suppose the startup is quickly acquired by an industry incumbent not long after launching the venture. What type of innovation does the new venture most likely have under Clayton Christensen's theory of disruptive innovation? Explain.
You are a nonprofit consultant who has been asked to advise the Board of Drivers-R-Us. Drivers-R-Us...
You are a nonprofit consultant who has been asked to advise the Board of Drivers-R-Us. Drivers-R-Us is a 501(c)(3) whose mission is to provide rides for seniors to medical appointments. The nonprofit, Drivers-R-Us, has been run very well by the Executive Director (ED) for many years. In fact, the board members, who are mostly retired seniors themselves, have done little but show up and approve whatever the ED suggested. But, lately the ED has been poorly prepared for meetings, fundraising...
A new database needs to be developed. You are required to draw the related Entity Relationship...
A new database needs to be developed. You are required to draw the related Entity Relationship Diagram (ERD) that includes the following information: (a) Employee (the company has several employees) (b) Department (each employee is assigned to one department) (c) Payroll (each employee receives his/her pay for the period) (d) Customer (employees sell products to customer) (e) Products (the company offers several products) Note that an employee can sell products to several customers and that every customer can be served...
RSQLite (using R studio) 1. Make you have imported the database tables into your database (I've...
RSQLite (using R studio) 1. Make you have imported the database tables into your database (I've copied and pasted these at the bottom). Write and submit the following RSQLite queries. 2. Retrieve the names of all employees. 3. Retrieve the names of all distinct employee names. 4. Retrieve the names of all employees whose name begins with the letter ‘B’. 5. Retrieve the names and NI numbers (NI_NO) of all employees. 6. Retrieve details of employees who are over 31...
Assume that a new intervention has been developed using a new approach to social skills training...
Assume that a new intervention has been developed using a new approach to social skills training to help individuals with Asperger’s syndrome. How would you design an experiment to test the intervention? Consider the type of experiment, exposure, measurement, ordering, assignment to condition, and comparison groups.
Assignment 1 - IN PDF FORMAT Using R and Rstudio Pick a database from: data() Then...
Assignment 1 - IN PDF FORMAT Using R and Rstudio Pick a database from: data() Then preview the first 10 rows. Print the number of rows and columns - Print the names of the variables If you have row names, print them - work with the values for a field in your dataset. You can do it by dataset[[xx]] operator with xx can be the index of the field or the nae of the field. Now use dataset[xx] to get...
Explain how policies and procedures are developed for a health and community service by using international,...
Explain how policies and procedures are developed for a health and community service by using international, national, state/territory and local government frameworks. Your answer must be between 100 to 200 words in length.
A subsidiary of Elektra Electronics has developed new software that allows Windows-based personal computers to run...
A subsidiary of Elektra Electronics has developed new software that allows Windows-based personal computers to run all Apple (i.e., Mac, iPhone, iPad, etc.) and Droid applications. Elektra has collected preliminary data on the weekly total cost of producing the new product at a number of different levels of production. Cost data are available in the worksheet entitled Software Cost. a) Generate a scatterplot in order to understand the nature of the relationship between weekly quantity produced and weekly total cost....
Calculate the mean and median age of drivers killed in car crashes using the data. Based...
Calculate the mean and median age of drivers killed in car crashes using the data. Based on the mean and median what is the mist likely distribution set? Age Frequency 10-19. 30 20-29. 24 30-39. 14 40-49. 8 50-59. 8 60-69. 3 70-79. 8 80-89. 5 Disregard the periods after the age given
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT