Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A .....-._._.- u--_r.._; .. 1. Using the case data and the customer lifetime value formulation provided in Chapter 10, Customer Lifetime Value, estimate the lifetime
A .....-._._.- u--_r.._; .. 1. Using the case data and the customer lifetime value formulation provided in Chapter 10,\" Customer Lifetime Value,\" estimate the lifetime value of a Netix customer for EACH QUARTER. a. b. Use the CLV alternative formula in Chapter 10's \"CLV with Initial Margin\" section and assume a 10% annual discount rate. In the customer lifetime value formula, you will need to compute retention rate. In the data, you have information on the total number of customers (or subscribers) per quester and the number of new subscribers (out of the total number of subscribers) per quarter. For example, in June 2001, Netix had 306, 88 were new subscribers. This This information can be used to compute retention rate. The retention rate per quarter is the percentage of subscribers in the quester who were also subscribers in the previous quarter. For example, the retention rate in June 2001 is equal to the percentage of customers in June 2001 who were also subscribers in March 2001. You will have to make a decision on what constitutes revenue and variable costs for Netix to compute the margin (M)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started