Cool Beans is a locally owned coffeeshop that competes with two large coffee chains, Planet Euro and Frothies. Alicia, the owner, is considering two different marketing promotions and thinks that CLV analysis will help her decide the best course of action. An average specialty coffee drink sells for $4.02 and has a margin of 79%. One promotion is providing loyalty cards to her regular customers that would give them one free specialty coffee drink after 10 regular purchases. Alicia estimates that this will increase the frequency of their purchases by 19%. Currently, her customers average buying 2 specialty drinks per week. The second promotion is targeted at new customers. She would offer a free specialty drink to incoming college freshmen by providing a coupon with their orientation packages. Because of her location near the college, she expects that 370 students will come to Cool Beans for a free trial. Of those, she anticipates that 14% will become regular customers who will purchase at least one specialty drink each week. The cost of printing and distributing the coupons is $118. CALCULATED VARIABLES: cost = $9.50 clva = $394 clvb = $331 margin = $3.18 What would be the net incremental value in adding the loyalty program? 0.00 dollars (S) PS3 2 3 4 6 7 8 9 10 SUBMIT ANSWER EXIT Cool Beans is a locally owned coffeeshop that competes with two large coffee chains, Planet Euro and Frothies. Alicia, the owner, is considering two different marketing promotions and thinks that CLV analysis will help her decide the best course of action. An average specialty coffee drink sells for $4.02 and has a margin of 79%. One promotion is providing loyalty cards to her regular customers that would give them one free specialty coffee drink after 10 regular purchases. Alicia estimates that this will increase the frequency of their purchases by 19%. Currently, her customers average buying 2 specialty drinks per week. The second promotion is targeted at new customers. She would offer a free specialty drink to incoming college freshmen by providing a coupon with their orientation packages. Because of her location near the college, she expects that 370 students will come to Cool Beans for a free trial. Of those, she anticipates that 14% will become regular customers who will purchase at least one specialty drink each week. The cost of printing and distributing the coupons is $118. CALCULATED VARIABLES: cost = $9.50 clva = $394 clvb = $331 margin = $3.18 What would be the net incremental value in adding the loyalty program? 0.00 dollars (S) PS3 2 3 4 6 7 8 9 10 SUBMIT ANSWER EXIT