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Many firms seek to optimize profitability, revenue and customer satisfaction by focusing on Customer Lifetime Value. What would be the impact on the average CLV
Many firms seek to optimize profitability, revenue and customer satisfaction by focusing on Customer Lifetime Value. What would be the impact on the average CLV for a subscription-based service like Netflix in each of the following scenarios? Assume all other inputs remain the same. *Slide 10 in the PowerPoint for Week 2 (which I uploaded in the module) will be helpful. I know this formula looks scary but try to see beyond the numbers. Use logic: what happens to profitability when COSTS increase for example? Variable costs increase, but prices do not [Select] The discount rate used increases [Select] Margin and the retention rate both increase [Select] Margin decreases, and the retention rate increase [Select] The cost to acquire new customers increases [Select] A discount for loyal customers increases the retention rate [Select] [Select] Increase Decrease The discount rate used increases [Sele Unknown impact No change Margin and the retention rate both increase [Select] Variable costs increase, but prices do no Margin decreases, and the retention rate increase [Select] The cost to acquire new customers increases Select] A discount for loyal customers increases the retention rate [Select
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