Question

Automation Inc. is a company that provides wireless telecommunications network in several cities in the Midwest region, and the company plans to know more about its customers. The company found that one of his customers has a short customer history of 35, an above-average purchase amount of 75, a low repurchase desirability of 25, a weak product preference of 20, and the customer does not recommend the company's services to potential customers.

Required:
Based on the values provided, what is this customer's loyalty index?

Answer 1

2,625

Step-by-step explanation:

The customer's loyalty index is calculated by multiplying the customer's average purchase amount by the average purchasing frequency. Since both of these values are provided to us in the question we can simply go ahead and multiply them together to get his/her loyalty index.

35 * 75 = 2,625

Finally, we can see that the loyalty index of the customer in question is 2,625