Question
Great Gator Gifts (GGG) launched a Go-Gators Club, where Gator fans can get a special preview and purchase unique Gator items. GGG attracted new customers
Great Gator Gifts (GGG) launched a Go-Gators Club, where Gator fans can get a special preview and purchase unique Gator items. GGG attracted new customers at a cost of $55.00 each and tracked their purchases over a 4-year period. Every year, at the beginning of football season, GGG sends a link to each member of the Go-Gators Club with a reminder to kick the season off with a special Gator gift. The average annual purchase was $970.00, with a gross margin of 60% and annual per capita marketing expense of $45.00. GGG uses a discount rate of 9%, and the observed annual retention rate of Go-Gators Club members was 50%. What was the Go-Gators Club 4-year CLV?
Step by Step Solution
3.39 Rating (146 Votes )
There are 3 Steps involved in it
Step: 1
To calculate the Customer Lifetime Value CLV of the GoGators Club over a 4year period we need to det...Get Instant Access to Expert-Tailored 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