Question

Golf Guide sells imprinted clothing and accessories for golfers through a catalog. To find new customers, Golf Guide sends a small catalog to names selected from mailing lists. The company mails out catalogs at a cost of $3,100 per thousand pieces mailed, and can expect a response rate of 6%. All responders become customers. Calculate the cost per customer acquired implied by these numbers. Round to the nearest penny.

Answer 1

Cost per customer acquired = $51.67

Step-by-step explanation:

Customer acquired per thousand pieces mailed = 1000*6% = 60

Total cost per thousand pieces mailed A $3,100

Divide by Customers acquired B 60

Cost per customer acquired A/B $51.67