CLV Formula = SM (1/(1+1-r)) 4.1) Estimate Customer life time value (CLV) when customer retention rate...

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CLV Formula = SM (1/(1+1-r)) 4.1) Estimate Customer life time value (CLV) when customer retention rate is 65%, interest rate is 5%, and a current margin per customer is $200. (3pts) 4.2) Estimate Customer life time value (CLV) when a margin per customer is increased to $300 (with other conditions provided not changed from 4.1). (3pts) 4.3) A special acquisition program to increase the retention rate to 85% from current 65% will cost your firm additional $40 per customer (with other conditions provided not changed from 4.1). Estimate Customer life time value (CLV) with this added acquisition cost, thus the changed margin per customer and the changed retention rate. (3pts) 4.4) Is the increased margin per person approach worth it in terms of improved CLV? Is the special acquisition program worth it in terms of improved CLV? Which approach would you choose? Why? (3pts) CLV Formula = SM (1/(1+1-r)) 4.1) Estimate Customer life time value (CLV) when customer retention rate is 65%, interest rate is 5%, and a current margin per customer is $200. (3pts) 4.2) Estimate Customer life time value (CLV) when a margin per customer is increased to $300 (with other conditions provided not changed from 4.1). (3pts) 4.3) A special acquisition program to increase the retention rate to 85% from current 65% will cost your firm additional $40 per customer (with other conditions provided not changed from 4.1). Estimate Customer life time value (CLV) with this added acquisition cost, thus the changed margin per customer and the changed retention rate. (3pts) 4.4) Is the increased margin per person approach worth it in terms of improved CLV? Is the special acquisition program worth it in terms of improved CLV? Which approach would you choose? Why? (3pts)

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