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Customers and growth: the economics of marketing

Which segment earns the profit?

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Customer segments of a fictional coffee chain in Mumbai, one year (illustrative)
Customer segments of a fictional coffee chain in Mumbai, one year (illustrative)
Segment (need)Customers (thousands)Visits per customer per yearSpend per visit (INR)Contribution margin (percent)
Commuters (speed on the way to work)20010018040
Students (a cheap place to sit and study)4003012025
Office teams (somewhere to meet)504060045
Weekend families (a treat)1501250035

The prompt

Using the table above, the fictional coffee chain wants to know which customer segment to build its next year around. Work out the revenue and contribution of each segment, in INR crore (1 crore is 10 million), and the contribution per customer.

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