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Now, FOS was facing some serious problems, which led the sales stagnant for the past three years no matter what different strategies they had tried. To persuade the profit is the common goals of companies, in order to get to this goal, there are some recommendations as following.
Recommendation
Increase the industry retention rate: particular of the top 25%: The retention rates have a direct impact on long-term customer value. In principle, if increase 5% of customer retention rate from 75% to 80%, improves 1 year of customer retention from 4 years to 5 years, Let?¦s take it in to calculation, and use 2002 as an example, the average revenue per client in the top 25% is $2430, and the customers in the top 25% is 1500 / 4 = 375, So the total revenue will increase 2430* 375 = 911250, it is about 71% of the total revenue of 2002...
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