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Q3: Assume that Shamnon's current CLV $142.00. Based on the change in CLV you computed in the last question, should Shannons implement the rewards program?
Q3: Assume that Shamnon's current CLV $142.00. Based on the change in CLV you computed in the last question, should Shannons implement the rewards program? Yes - introdoce rewards progam. No *- do not introduce imwards program There b insulfscient data to answer 'yes' of "no" Question 4 10 ots Q4: Assume that Shannon's decides to move forward with its loyalty/rewards program. Estimates for the cost per customer is $6.16 per month. Average customer. margins, before subtracting off the cost of the lovalty/rewards program, are expected to be 33.34. Assuming that 5 hunnon's wishes to obtain a minimum CLV of 5120 . what is the required retention rate that must be achieved? Assume that the inserest rate is 1% per month. Note: This problem assumes that you employ some abebra to solve the C.V formula for r.) Express your answer to four decimai places e. g. 1234. Do not express in percent form
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