Question: A cellphone provider s average phone bill is $ 2 1 . 8 0 per month. It has two variable costs, including $ 4 account
A cellphone providers average phone bill is $ per month. It has two variable costs, including $ account per month for maintenance and $ for marketing per year. Its customer attrition is per month. The company also has an average monthly discount rate of Answer the following questions points each
How much is the companys average CLV
What happens to the CLV if the company reduces the maintenance costs by $ per month and $ for marketing, with all other things unchanged? What happens to the CLV if the company reduces the customer attrition to per month?
Between reducing costs vs reducing attrition, discuss which one the company should focus, and why?
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