STEP 2 2.1 / Customer Lifetime Value and loyalty The marketing department is working on the development of packaged offers for COOLMENU. You are asked for an estimate of the Customer Life Time Value. This estimate concerns a sample of contracts with common characteristics: Average invoicing amount: 12,000 per month which can be detailed as follows: - Supply: 85% of the invoice amount, with 15% added value * - IT tools fee: 10% of the amount, with 70% added value *. - Monthly training package: 5% of the amount with 50% added value *. * Estimate given by management control The current observation is that the average duration of contracts is 3 years with a retention rate of 65%. The prices for these services are not indexed to any price index and are subject to intense competition. Management control advises to apply a 2% discount rate. It's up to you to estimate the lifetime value of these customers on the basis of the added value. - Give the details of your calculations (for example through a table), - suggest additional data to be considered to refine this calculation, - explain the use you can make of this value. 2.2 / Loyalty supports COOLMENU department wishes to define loyalty resources for the same sample of clients. The objective is to increase the retention rate by 5 percentage points. The budget for loyalty actions must not exceed 10 % of the expected gain (CLV based on added value). - Calculate the amount of your loyalty budget per customer (explain your calculations). - Propose five relevant support or means of loyalty, including three priority ones, argue considering your budget.