1. Again, just looking at the highest CLV segment, suppose that instead of spending the whole $300,000 on the ad buy, Extra Tasty would like to consider spending some of the funds on ads and some on coupons. Assuming that option 1) spending the $300,000 on advertising would have brought in 1,500 customers, option 2) spending $175,000 on ads, and offering a $40 coupon would draw 2,500 new customers, and option 3) spending $175,000 on ads, and offering a $30 coupon would draw 1,800 new customers:
2. Calculate the new CLV for each option [3]:
3. $300,000 on ads
4. $175,000 on ads and a $40 coupon
5. $175,000 on ads and a $30 coupon