wwwwww 4. You run a sporting good store in Olean, NY. Your customers are either Townies...

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wwwwww 4. You run a sporting good store in Olean, NY. Your customers are either Townies (residents of the town) or Students (of St. Bonaventure University). Some characteristics of those two segments are as follows: Townies Students Number in segment 1000 1500 Profit per person per year $200 $300 Acquisition Cost per customer $200 $300 Churn Rate per year 20% 25% Assume an interest rate of 0%. a. Does a Townie or a Student have a higher LTV? Show your work. You target the Townies and learn that if you incur an $800 increase in your acquisition cost you can either double your profit per year or cut your Churn Rate in half. b. Should you invest the $800 to double the profit per year? Show your work. c. Should you invest the $800 to halve the Chum Rate? Show your work. wwwwww 4. You run a sporting good store in Olean, NY. Your customers are either Townies (residents of the town) or Students (of St. Bonaventure University). Some characteristics of those two segments are as follows: Townies Students Number in segment 1000 1500 Profit per person per year $200 $300 Acquisition Cost per customer $200 $300 Churn Rate per year 20% 25% Assume an interest rate of 0%. a. Does a Townie or a Student have a higher LTV? Show your work. You target the Townies and learn that if you incur an $800 increase in your acquisition cost you can either double your profit per year or cut your Churn Rate in half. b. Should you invest the $800 to double the profit per year? Show your work. c. Should you invest the $800 to halve the Chum Rate? Show your work.

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Answer To determine whether a Townie or a Student has a higher Lifetime Value ... View the full answer