2:02 AM 60%. Back Chapter 5 worksheet.docx Chapter 5 Assignments 30 Points Possible Be sure to use complete sentences and proper labeling (numbers, dollars, etc Make sure to review the grading rubric in Canvas Be sure to show all of your calculations For You Massage is a new concept massage service with a monthly subscription. You pay a fee each month towards spa services. Their monthly fee is $29.95 per month. Variable costs for products and supplies total $2.50 per customer. The spa spends about $5.40 per year per customer. They are able to retain about 85% of their customers each month. The monthly discount rate is 1.5% To gain more customers, the spa is planning to spend $75,000 on a direct mail coupon reaching 90,000 homes in the area. They estimate that they will get about 2% of the homes to take advantage of the coupon and become new customers. The intended margin after customers redeem the coupon is S12 In total for the year, they intend to run the direct mail plan 4 times each time acquiring about 1,800 customers each time In addition to the spending to acquire new customers, they also spend about $100,000 on loyalty programs to keep their 135,000 current customers 1. Calculate the CLV 2. Calculate the PLV 3. Calculate average acquisition cost Calculate average retention cost 5. Remembering that not all customers are created equal, explain how to analyze the effectiveness and efficiency of value of customers and their marketing spending. In other words, how do you know what customers you want to keep and what customers you don 1? How does that effect your marketing spending?