Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 4 10 pts Q4: Assume that Shannon's decides to move forward with its loyalty/rewards program. Estimates for the cost per customer is $5.38
Question 4 10 pts Q4: Assume that Shannon's decides to move forward with its loyalty/rewards program. Estimates for the cost per customer is $5.38 per month. Average customer margins, before subtracting off the cost of the loyalty/rewards program, are expected to be 34.57. 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 1% per month. (Note: This problem assumes that you employ some algebra to solve the CLV formula for r.) Express your answer to four decimal places e.g. .1234. Do not express in percent form.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started