|
New
Customer Current Profits
| Computation
and Measure: |
 |
New-Customer
Current Profit = NpaSama-Npcp
where:
Np
= the number of prospects
a
= the acquisition rate,
Sa = average sales dollars
generated by a new customers;
ma = margin percent
for a new customers,
cp = the cost of marketing
to each prospect.
|
| Example: |
| |
Based
on the data in Table
Acquisition-1 of the Acquisition Accounting Measures
section, let Np=7,308, a=.13, Sa*ma=$500.00,
cp=$150.
Based on this New customer profit current period
is ($621,180).
|
|
