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Consider this subscription service for time in a shared office space. What is the CLV for an average customer? Billing: Beginning of the month Question 1(A) Question 2(A) Monthly margin (M): $200 per customer In May, Gorgeous Gowns acquired 500 customers. What is the present value of total net profit in September? Annual retention spending (R): $600 per customer Monthly margin (M): $125 per customer Monthly retention (r): 95% Monthly retention spending (R): $25 Discount rate (d): 3% Monthly retention rate (r): 50% Question 1(B) In June, Sharp internet services had 10,000 customers. What is the present value of total net profit in September? Question 2 (B) Monthly margin (M): $60 per customer In January, 300 people sign up for a dance studio membership. What is the present value of total net profit from January to May for this cohort of dancers? Monthly retention spending (R): $10 Monthly margin (M): $175 per customer Monthly retention rate (r): 75% Monthly retention spending (R): $25 Monthly retention rate (r): 70% Question 3 You are trying to maximize CLV based on the following information. How much should you spend on marketing and retention (R) to maximize CLV? M = $50 d = .05 If R = $5, then r = 44%