As a reminder, we$$ve decided Soft$-$Ts will remain its own brand that operates independently of Buhi.

Soft$-$Ts$$ target audience consists of males ages $24-31$ who work part$-$time and have average disposable incomes. They love to feel like they$$re helping the environment and want their peers to perceive them as environmentally conscious. In fact, they usually take to social media to share their environment$-$related opinions and achievements.

Because we$$re selling a different product $$ in this case, Soft$-$Ts shirts $$ to our current customers, we need to use customer lifetime value $($CLV$)$ and customer acquisition cost $($CAC$)$ to identify which of our customers would be most profitable to target.

Calculate CLV for each of our segments and take note of their profiles. We want to target segments that would be interested in Soft$-$Ts but that also have high CLV$.$ Also, calculate CAC for Soft$-$Ts$,$ and use all of that information to determine to which customers we should cross$-$sell Soft$-$Ts shirts.

The formulas we use to calculate CLV and CAC are:

CLV $=$ Average revenue per customer per period x Average customer relationship length

CAC $=$ All costs spent to acquire customers in a period $/$ Number of customers acquired in the period

See if you need to adjust the price of the Odyssey Hip Pack to optimize for revenue and maintain or improve our profit margin. If you do$,$ continue relying on the competitor pricing data you were given earlier.

I$$ll make sure you have the data you need to complete all of your tasks.