After you have calculated a $CLV$ for each type $of$ customer that NCA serves, Kari would like you consider the following questions and summarize your findings and recommendations $in$ the memo that you prepare:

$*$ What $is$ the value $ofan$ average $RBC,NSN,$ and $SFC$ customer? Which kind $of$ customer $do$ your analyses suggest $is$ the most valuable? Also, are the break$-$even points for these customers the same $ordo$ they vary?

$*$ Kari and her team are considering dropping the price $of$ its $NSN$ coaching program. The proposal $on$ the table $isto$ reduce the price $of$ this offering $by$ $$25to$ a new price $of$ $$475.$ The $HR-$related costs for this offering would remain the same but NCA predicts that the new lower price would boost the response rate $to3\mathrm{.}1\%$ and the retention rate $to53\%.$ Assuming that these forecasts are correct, should NCA implement this strategy?

$*$ Kari has also come $up$ with some fresh new ideas for how $to$ boost the profitability $of$ their $SFC$ coaching product. $In$ a nutshell, they have come $up$ with two different options. Kari describes both $of$ these options $to$ you $asa$ little out there$,$ and says that they only want $to$ mention these $to$ the NCA management team $if$ one $of$ them really has the potential $to$ boost the company$s$ profitability. For now, Kari says coyly, the specific $of$ these options will have $to$ stay $under$ wraps$.$ Assume that the associated costs for these options are identical and that the timing $of$ these costs $is$ also identical. Based solely $on$ your $CLV$ analyses, which option looks like the preferred choice? Under what assumptions would you recommend actually implementing this option? Here are the options $to$ consider:

Option $1$: Kari believes that this option would boost the $SFC$ response rate from $3\%to3\mathrm{.}5\%.$

Option $2$: Kari believes that this option would boost the $SFC$ retention rate from $56\%to61\%.$

$*$ Finally, based $on$ all $of$ the $CLV$ analyses you have conducted and the insights into customer profitability that you have obtained, what actions should NCA take $to$ improve its overall financial performance? Specifically, $do$ they need $to$ make any modifications $in$ their product lineup? $If$ they make these changes, what kind $of$ short$-$term and long$-$term effects will this have $on$ NCA$s$ business?

$*$ Which $of$ NCA$s$ existing products are most exposed $to$ the risk that Nomad Revolution$s$ Nomad Bootcamp product poses? How should $we$ determine NCA$s$ level $of$ exposure $to$ this new competitive threat?

$*$ Relatedly, what would the potential impact $of$ this competitive threat $be(in$ dollar terms$)if$ NCA simply waits and does nothing? Again, please explain the logic that underlies your answer.

$*To$ defend itself from this competitor, NCA $is$ considering launching a new fighter brand called Nomad Jumpstart. This program would also $bea1-on-1$ coaching product and would offer $24$ annual sessions like NCA$s$ existing products. The total $HR$ costs associated with the product are estimated $tobe$ $$100$ and the price $to$ clients would $be$ $$275.$ Based $on$ the data that you have $in$ hand, would $it$ make sense for NCA $to$ launch this fighter brand? Specifically, Kari $is$ worried that this new product could cannibalize some $of$ NCA$s$ existing sales and negatively impact the bottom line. Which existing product $\frac{?}{?}$ products would $be$ most likely $tobe$ negatively affected $in$ this way and how does the impact $of$ this cannibalization compare $to$ the $wait$ and see$$ scenario that Kari $is$ also considering? Based $on$ your analysis, would you recommend launching the fighter brand $or$ not?

$In$ Tables $1$ and $2$ below, you will see a bit more detail $on$ NCA$s$ recent financial performance and the three kinds $of$ coaching programs $it$ offers. Following this background information, you will find more guidance $on$ how $to$ weave the various frameworks from the final weeks $ofMKTG511$ into a compelling proposal.

Table $1$: Nomad Coaching Academy $(NCA)$ Historic Sales $(in$ thousands $$)$

Program $202120222023$

New Remote Boss $(NRB)$ $$1,400$ $$1,570$ $$1,680$

Next Step Nomad $(NSN)$ $$1,475$ $$1,622$ $$1,800$

Six Figure Circle $(SFC)$ $$1,736$ $$1,910$ $$2,160$

$$4,611$ $$5,102$ $$5,640$

Table $2$: Key Data $on$ Existing NCA Coaching Programs

Program Total Customers Enrolled Annual Sessions $in$ Program End$-$User Price $(per$ session$)$ Total $HR$ Costs $(per$ session$)$

New Remote Boss $(NRB)20024$ $$350100$

Next Step Nomad $(NSN)15024$ $$500300$

Six Figure Circle $(SFC)10024$ $$900500$