Module: Customer Lifetime Value 2/ Problem Set ID: 1037 Alfred's organic dog food was formulated to provide for the nutritional needs of older pets. The company did not sell through retailers, but shipped directly to consumers. Consumers ordered through the company's website or called the 1-800 number. An analysis of the company's records showed the patterns for a typical cohort of 50 customers in the table below. The company's contribution margin on this product was 33% of sales after shipping, order processing and other variable non-marketing costs. Each order included a brochure and reorder forms that cost $0.56 per shipment. Because the time ben ders averaged 3 months, the company organized their analysis into period of 3 month on Almost no customers ordered after two years from their Initial order. Alfred has historic used an annual discount rate of 8% to determine CLV. 3 Month Period 0 1 2 3 4 5 6 Customer Orders 50 24 16 12 8 4 2 Avg $/Order $24 $40 $31 $35 $25 $20 $20 CALCULATED VARIABLES: chy - $20.57 discount -0.0194 (1.945) margin-$7.36 Using the same discount rate, what is the CLV remaining for customers who have placed one initial order, but not yet ordered the second time? 0.00 dollars (5) 2 3 4 5 PS3 6 SUBMIT ANSWER F rom the Tutorial biasanim 5 presentation or a pan. The tutorial provides backround on h e to Marketing Metrics for a more in-depth discussion if you are using the tutorial in parallel with the Marketing Metrics book corresponding Problem Sets. The problem sets give you the opportunity to put into practice the concepts in the topic MacBook Pro Q ER Module: Customer Lifetime Value 2/ Problem Set ID: 1037 Alfred's organic dog food was formulated to provide for the nutritional needs of older pets. The company did not sell through retailers, but shipped directly to consumers. Consumers ordered through the company's website or called the 1-800 number. An analysis of the company's records showed the patterns for a typical cohort of 50 customers in the table below. The company's contribution margin on this product was 33% of sales after shipping, order processing and other variable non-marketing costs. Each order included a brochure and reorder forms that cost $0.56 per shipment. Because the time ben ders averaged 3 months, the company organized their analysis into period of 3 month on Almost no customers ordered after two years from their Initial order. Alfred has historic used an annual discount rate of 8% to determine CLV. 3 Month Period 0 1 2 3 4 5 6 Customer Orders 50 24 16 12 8 4 2 Avg $/Order $24 $40 $31 $35 $25 $20 $20 CALCULATED VARIABLES: chy - $20.57 discount -0.0194 (1.945) margin-$7.36 Using the same discount rate, what is the CLV remaining for customers who have placed one initial order, but not yet ordered the second time? 0.00 dollars (5) 2 3 4 5 PS3 6 SUBMIT ANSWER F rom the Tutorial biasanim 5 presentation or a pan. The tutorial provides backround on h e to Marketing Metrics for a more in-depth discussion if you are using the tutorial in parallel with the Marketing Metrics book corresponding Problem Sets. The problem sets give you the opportunity to put into practice the concepts in the topic MacBook Pro Q ER