Question

A local dental practice decides to run a Groupon campaign. The campaign offered $345 worth of dental services (such as teeth whitening) for $140. For the total campaign, 240 coupons were sold. We estimate that 85% of the coupons will be redeemed, that 35% of the coupons will be redeemed by existing customers and that, on average, Groupon customers purchased 1.5 coupons. Let’s assume that 24% of new customers come back after the Groupon coupon visit. The dental practice estimates its cost of goods sold to be 55%. Finally, the bill for the average Groupon customer was $395. The dental practice negotiated a 50/50 split with Groupon. Calculate the number of new customers.

Answer 1

Total coupons = 240

estimated redeemable coupons 85% of 240 = 204 coupons

Less 35% coupons to be redeemed by the existing customers 204-(35% of 204)

Coupons to be redeemed by new customers = 133 coupons

Given that new customers purchased 1.5 coupon each on avg., so the no.

of new customers = 133/1.5 => 89 customers

Assuming that 24% of the new customers will come back, new customers

for the dental practice after the campaign will be = 89*24/100 => 21 customers