Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bell Mobility is a Canadian wireless provider which sells wireless services across Canada. The company has 9 million subscribers, making it Canada's second largest wireless

image text in transcribed
Bell Mobility is a Canadian wireless provider which sells wireless services across Canada. The company has 9 million subscribers, making it Canada's second largest wireless carrier. Bell Please look at the data provided below, answer the following questions, and present a complete and detailed solution. Mobility On average, the monthly revenue generated by each customer is $70, and the cost of product per customer is $32. The marketing manager reports that the marketing retention spending per customer is $180 annually, which results in a monthly attrition rate of 18%. The company's annual discount rate is 15%. Q1: What is the expected CLV for a particular group of potential customers (Cohort #6) that consists of 1000 individuals? Calculate CLV for the following time horizons (months): T= 3, 5, 8, 10. Q2: What is the maximal amount that the company should spend on a marketing campaign that will result in acquiring a group of potential customers (Cohort #6) that consists of 1000 individuals? Q3: The Company's marketing manager considers increasing the annual marketing retention spending to $220. If she did so the monthly attrition rate would go down to 15%. Would you advise her to do that? Explain why. Notes: For Q2-Q3 calculate CLV for T Final answers should be presented using the enclosed table. Below the table, please provide your detailed solution. This assignment should be submitted by teams of TWO students. Papers should be submitted online by each and every team member. Bell Mobility is a Canadian wireless provider which sells wireless services across Canada. The company has 9 million subscribers, making it Canada's second largest wireless carrier. Bell Please look at the data provided below, answer the following questions, and present a complete and detailed solution. Mobility On average, the monthly revenue generated by each customer is $70, and the cost of product per customer is $32. The marketing manager reports that the marketing retention spending per customer is $180 annually, which results in a monthly attrition rate of 18%. The company's annual discount rate is 15%. Q1: What is the expected CLV for a particular group of potential customers (Cohort #6) that consists of 1000 individuals? Calculate CLV for the following time horizons (months): T= 3, 5, 8, 10. Q2: What is the maximal amount that the company should spend on a marketing campaign that will result in acquiring a group of potential customers (Cohort #6) that consists of 1000 individuals? Q3: The Company's marketing manager considers increasing the annual marketing retention spending to $220. If she did so the monthly attrition rate would go down to 15%. Would you advise her to do that? Explain why. Notes: For Q2-Q3 calculate CLV for T Final answers should be presented using the enclosed table. Below the table, please provide your detailed solution. This assignment should be submitted by teams of TWO students. Papers should be submitted online by each and every team member

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance A Quantitative Introduction Volume 1

Authors: Piotr Staszkiewicz, Lucia Staszkiewicz

1st Edition

0128015845, 978-0128015841

More Books

Students also viewed these Finance questions