Question
Q2: Assume that Shannons decides to move forward with its loyalty/rewards program. Estimates for the cost per customer are $3.1 per month. Average customer margins,
Q2: Assume that Shannons decides to move forward with its loyalty/rewards program. Estimates for the cost per customer are $3.1 per month. Average customer margins, before subtracting off the cost of the loyalty/rewards program, are expected to be $36 per customer per month with a boost in retention to 82% per month. What is the resulting CLV if the annual interest rate for discounting cash flows remains the same as in Q1? Compute your answer to the nearest dollar. Flag question: Question 3 Question 310 pts
Q3: Assume that Shannons current CLV=$142.00. Based on the change in CLV you computed in the last question, should Shannons implement the rewards program?
Group of answer choices Y
es -- introduce rewards program.
No -- do not introduce rewards program
There is insufficient data to answer "yes" or "no."
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The Oxford Guide To Financial Modeling
Authors: Thomas S Y Ho, Sang Bin Lee
1st Edition
019516962X, 9780195169621
