Question 1: CLV and ROI at Coursera (40 pts) All the facts and numbers below are disg and fictional for the purpose of this assignment. Coursera is an online provider of courses. In 2018 it switched from a 'pay-per-course' pricing model to a subscription-based pricing model. Please take the following facts into regard for the year after the transition (2019): 2019 All courses still free to participate in. Certificates are only available to customers who pay a monthly fee of $50. 15 million people took a course at Coursera. 1% of them registered for a monthly subscription. Churn rate: the average percentage of customers who cancel their subscription is 40% per year The margin for each dollar earned is 20 cents. There is a discount factor of 20% per year. We assume that customers never stay subscribed for more than 5 years. a) What is the Customer Lifetime Value (CLV) for the average paying subscribers in 2019? Show the calculation. Answer B Start Right at the start of the new subscription model in 2019, the number of paying. subscribers was quite low. The marketing department at Coursera decided to launch a marketing campaign to increase the number of paying subscribers. They introduced an influencer campaign. For each successful conversion (a new paying subscriber that entered the website from one the posts of the influencers), the influencers received $100 dollar. These were the conversion rates for the different social media platforms after the campaign ended: Site Visits Conversion rate (%) Facebook 2000000 1% Linkedin 500000 2% Instagram 2500000 0,50% Snapchat 1250000 0,80% Youtube 250000 2% Pinterest 50000 0,20% Twitter 4000000 0,75% Although the total marketing investment Coursera had to make included paying the influencers a fee for every conversion, only 50'000 customers actually stayed at the platform after the 14-day free trial period. Please use only the CLV of these 50'000 customers for the marketing ROI calculation. b) What was the marketing ROI of this campaign? Show the calculation.