QUESTION 1 Shannon's currently boasts a customer base of 1,750 customers that frequent the brewhouse on average twice per month and spend $30 per visit. Shannon's current variable cost of goods sold is 50% of sales. The customer base is month with a customer retention rate of 076%, based on data collected rom its website and an analys f credit card receipts. It's current cost of capital for borrowing and investing is about 12% per year. What is Shannon's approximate LV for its average customer? at the rate of 3% per your answer to the nearest penny. QUESTION 2 Assume that Shannon's decides to move forward with its loyalty / rewards program. Estimates for the cost per customer are $5.82 per 33.42 per customer per month with a discounting cash flows remains the same as in Q1 (i.e. 12%)? Round your answer to the nearest penny. Average customer margins, before subtracting off the cost of the loyalty/rewards p to increase to boost in retention to 82 per month. What is the resulting CLV if the annual interest rate for QUESTION 3 Assume that Shannon's decides to move forward with its loyalty /rewards program. Estimates for the cost per customer are $4.62 per month. Average customer margins, before subtracting off the cost of the loyalty / rewards program, are expected to be 33.78. Assuming that Shannon's wishes to obtain a minimum CLV of $120 what is the required retention rate that must be achieved? Assume that the interest rate is 196 per month. Compute your answer to the nearest 1/100 of a percent eg. 50.13%. However, do not include the % symbol. QUESTION 1 Shannon's currently boasts a customer base of 1,750 customers that frequent the brewhouse on average twice per month and spend $30 per visit. Shannon's current variable cost of goods sold is 50% of sales. The customer base is month with a customer retention rate of 076%, based on data collected rom its website and an analys f credit card receipts. It's current cost of capital for borrowing and investing is about 12% per year. What is Shannon's approximate LV for its average customer? at the rate of 3% per your answer to the nearest penny. QUESTION 2 Assume that Shannon's decides to move forward with its loyalty / rewards program. Estimates for the cost per customer are $5.82 per 33.42 per customer per month with a discounting cash flows remains the same as in Q1 (i.e. 12%)? Round your answer to the nearest penny. Average customer margins, before subtracting off the cost of the loyalty/rewards p to increase to boost in retention to 82 per month. What is the resulting CLV if the annual interest rate for QUESTION 3 Assume that Shannon's decides to move forward with its loyalty /rewards program. Estimates for the cost per customer are $4.62 per month. Average customer margins, before subtracting off the cost of the loyalty / rewards program, are expected to be 33.78. Assuming that Shannon's wishes to obtain a minimum CLV of $120 what is the required retention rate that must be achieved? Assume that the interest rate is 196 per month. Compute your answer to the nearest 1/100 of a percent eg. 50.13%. However, do not include the % symbol
