Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Great Gator Gifts (GGG) launched a Touchdown Club, where Gator fans can create a wish list of Gator items. Every year, at the beginning of

Great Gator Gifts (GGG) launched a Touchdown Club, where Gator fans can create a wish list of Gator items. Every year, at the beginning of football season, GGG sends a link to the spouse of each member of the Touchdown Club with a reminder to kick the season off with a special Gator gift. GGG attracted new customers at a cost of $25.00 each and tracked their purchases over a 4-year period. The average annual purchase was $500.00, with a gross margin of 60% and annual per capita marketing expense of $50.00. GGG uses a discount rate of 8%, and the observed annual retention rate of Touchdown Club members was 50%. What was GGGs 4-year CLV?

Please do it in Excel as it is the example.

image text in transcribedimage text in transcribed

CLV Computational Example - All-Star Toys \& Games, a toy retailer, launched a Birthday Club, where parents provide their children's toy preferences and their child's grandparents' addresses. All-Star sends each grandparent a reminder and hints for gifts two weeks before their grandchild's birthday. CLV Example - 2,000 new customers were attracted at a cost of $20 each and then tracked over a 3-year period ( T =3 ). The average annual purchase was $1000.00, with a gross margin of 50% and annual per capita marketing expense of $100.00. All-Star uses a discount rate of 10%, and the retention rate was 40%. -What is All-Star's 3-year CLV for the Birthday Club? And the answer is

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_2

Step: 3

blur-text-image_3

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

Money And Banking

Authors: Robert E. Wright, Vincenzo Quadrini

1st Edition

0982043082, 9780982043080

More Books

Students also viewed these Accounting questions

Question

What is Accounting?

Answered: 1 week ago

Question

Define organisation chart

Answered: 1 week ago

Question

What are the advantages of planning ?

Answered: 1 week ago