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A marketer of a medication is willing to invest in the acquisition of new patients. What would be the upper limit of this investment per
A marketer of a medication is willing to invest in the acquisition of new patients. What would be the upper limit of this investment per patient assuming the follow retention/attrition rate and assumptions? Should the marketer spend an additional $2.00 per month to reduce the attrition rate by 2% per month (e.g. 95.10 instead of 93.10 or 89.40 instead of 87.40 in the first two months)? Assumptions: 1. Revenue per patient per month=$250 2. Medications are paid for at the end of the month 3. Internal rate of return of 18% compounded monthly. Retention rate for a typical cohort Month Month O Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Retention 100.00 93.10 87.40 82.82 79.32 77.29 75.30 73.36 71.46 69.70 67.98 65.50 63.95 A marketer of a medication is willing to invest in the acquisition of new patients. What would be the upper limit of this investment per patient assuming the follow retention/attrition rate and assumptions? Should the marketer spend an additional $2.00 per month to reduce the attrition rate by 2% per month (e.g. 95.10 instead of 93.10 or 89.40 instead of 87.40 in the first two months)? Assumptions: 1. Revenue per patient per month=$250 2. Medications are paid for at the end of the month 3. Internal rate of return of 18% compounded monthly. Retention rate for a typical cohort Month Month O Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Retention 100.00 93.10 87.40 82.82 79.32 77.29 75.30 73.36 71.46 69.70 67.98 65.50 63.95
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