Acquisition Cost, Break Even, and $CLV$: Average $NSN$ Coaching Customer Issue: Should NCA change the price $of$ its $NSN$ program $to$ $$475?$

Please use the tables provided and please show your work! Please use the tables provided and please show your work!

$NSN$ Coaching $CLV$ Table Period $01234NSN$ Coaching $CLV$ Table Period $01234$

Year $1$ Year $2$ Year $3$ Year $4$ Year $5$ Year $1$ Year $2$ Year $3$ Year $4$ Year $5$

Per Session Revenue Per Session Revenue

Per Session Total $HR$ Costs Per Session Total $HR$ Costs

Per Session Gross Margin Per Session Gross Margin

# $of$ Annual Sessions # $of$ Annual Sessions

Annual Gross Margin Annual Gross Margin

Customer Acquisition Cost Customer Acquisition Cost

Survival Rate Survival Rate

Annual Net Marketing Contribution $(NMC)$ Annual Net Marketing Contribution $(NMC)$

$NPVof$ Annual $NMCNPVof$ Annual $NMC$

Cumulative $NMCto$ Date Cumulative $NMCto$ Date

$NPVof$ Cumulative $NMCto$ Date $NPVof$ Cumulative $NMCto$ Date

Please use the tables provided and please show your work! Please use the tables provided and please show your work!

Revenue$\frac{s}{C}$osts Worksheet Revenue$\frac{s}{C}$osts Worksheet

Contact Cost $$250$ Contact Cost $$250$

Response Rate $2\mathrm{.}8\%$ Response Rate $3\mathrm{.}1\%$

Acquisition Cost Acquisition Cost

Support Staff Needed $1$ Support Staff Needed $1$

Support Worker Cost $$100$ Support Worker Cost $$100$

Facilitators Needed $1$ Facilitators Needed $1$

Facilitator Hourly Labor Cost $$200$ Facilitator Hourly Labor Cost $$200$

Total $HR$ Cost Per session Total $HR$ Cost Per session

Session Revenues per Customer $$500$ Session Revenues per Customer $$475$

Session Gross Margin $ Session Gross Margin $

Session Gross Margin $\%$ Session Gross Margin $\%$

Annual Sessions $24$ Annual Sessions $24$

Annual Gross Margin $ Annual Gross Margin $

Retention Rate $50\%$ Retention Rate $53\%$

Interest Rate $6\%$ Interest Rate $6\%$Acquisition Cost, Break Even, and $CLV$: Average $NSN$ Coaching Customer

$|Please$ use the tables provided and please show your work!

Issue: Should NCA change the price $of$ its $NSN$ program $to$ $$475?$

Please use the tables provided and please $sinow$ your work!

Please use the tables provided and please show rour work!

Revenue$\frac{s}{C}$osts Worksheet

Please use the tables provided and please show your work!

Revenue$\frac{s}{C}$osts Worisheet