2. Assume that Shannons decides to move forward with its loyalty/rewards program. Estimates for the cost per customer are $2.5 per month. Average customer margins, before subtracting off the cost of the loyalty/rewards program, are expected to be $36 per customer per month with a boost in retention to 82% per month. What is the resulting CLV if the annual interest rate for discounting cash flows remains the same as in Q1? Compute your answer to the nearest dollar.

Connect to intance (EC2MM M (1931-degananda Our Content that he Beard Scene 2/32506 It's Your Turn. Show Us What You Have Learned. Shannon's Brewery continues to grow its customer base but is to concerned with enhancing the loyalty and associated repeat business from its existing customer base. Shannon realise that the cheaper to maintain a cadre af oval customers than it is to recruit new customers. To this end Shannon was to experiment with a loyaltyewards program that encore more frequent visits to the brewhouse along with added consumption per it. The rewards program to be implemented next month, comists of an 'polong with in-store kose that will better track customer visits and purchase. The who will offer rewards based on post purchases per visit and number of visits Rewards will be in the form of free products and discounts on select products Email promotion, limited direct mal social media and web promotions on its own website and Facebook page will be extensively employed to create and disseminate promotion information D Question 1 10 pts Q1: Shannon's brewery currently boasts a customer base of 1.750 customers that frequent the brewhouse on average twice per month and spend 531 per visit. Shannon's current variable cost of goods told is 50% of sales. The customer retention rate per month 0.82% baved on data collected from its website and an analysis of credit card receipts its current cost of capital for borrowing and Investing is about 12% per year, or 1% per month What is Sharinon's approximate CV for its average customer Compute your answer to the nearest penny Question 2 10 pts Q2:Anam that Sharan's decides to move forward with its loyalty rewards program. Estimates for we cost per customer are $2.5 per month Average customer margins, bore subtracting on the cost of the boyalty rewards programare pected to be $36 per cutere month with a boost in tertion to 82% month What is the resulting Cuvir the interest rate for counting cash flows the same in Compute your two to the nearest dolor Questiona 81 De Connect to intance (EC2MM M (1931-degananda Our Content that he Beard Scene 2/32506 It's Your Turn. Show Us What You Have Learned. Shannon's Brewery continues to grow its customer base but is to concerned with enhancing the loyalty and associated repeat business from its existing customer base. Shannon realise that the cheaper to maintain a cadre af oval customers than it is to recruit new customers. To this end Shannon was to experiment with a loyaltyewards program that encore more frequent visits to the brewhouse along with added consumption per it. The rewards program to be implemented next month, comists of an 'polong with in-store kose that will better track customer visits and purchase. The who will offer rewards based on post purchases per visit and number of visits Rewards will be in the form of free products and discounts on select products Email promotion, limited direct mal social media and web promotions on its own website and Facebook page will be extensively employed to create and disseminate promotion information D Question 1 10 pts Q1: Shannon's brewery currently boasts a customer base of 1.750 customers that frequent the brewhouse on average twice per month and spend 531 per visit. Shannon's current variable cost of goods told is 50% of sales. The customer retention rate per month 0.82% baved on data collected from its website and an analysis of credit card receipts its current cost of capital for borrowing and Investing is about 12% per year, or 1% per month What is Sharinon's approximate CV for its average customer Compute your answer to the nearest penny Question 2 10 pts Q2:Anam that Sharan's decides to move forward with its loyalty rewards program. Estimates for we cost per customer are $2.5 per month Average customer margins, bore subtracting on the cost of the boyalty rewards programare pected to be $36 per cutere month with a boost in tertion to 82% month What is the resulting Cuvir the interest rate for counting cash flows the same in Compute your two to the nearest dolor Questiona 81 De