Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The AlphaPure, a company that markets water purifier systems for the home, spent $2 million on marketing efforts last year. Senior executive estimates that about
The AlphaPure, a company that markets water purifier systems for the home, spent $2 million on marketing efforts last year. Senior executive estimates that about 50% of its marketing activities were focused on attracting new customers, and last year they sold 10.000 new puriher systems as a result. The AlphaPure purifier system is priced at $150 which comes with enough hlters that last an entire year. but customers will have to purchase $50 worth of filters annually after the initial purchase. About 75% of customers end up repurchasing the filters annually. The margins for the system and filters are 20% and 80% respectively, and AlphaPure uses a 4-year planning horizon in its strategic planning (ie, it assumes the average customer only lasts 4 additional years after the initial acquisition Internally. AlphaPure uses 1096 as its discount rate. A Calculate the CLV for an average customer for AlphaPure. Please show your calculations for full credit. (5 pts) 0 2 Year Revenue Contribution Retention Rate Expected Profit NPV Cust Acq Cost CLV per Customer The AlphaPure, a company that markets water purifier systems for the home, spent $2 million on marketing efforts last year. Senior executive estimates that about 50% of its marketing activities were focused on attracting new customers, and last year they sold 10.000 new puriher systems as a result. The AlphaPure purifier system is priced at $150 which comes with enough hlters that last an entire year. but customers will have to purchase $50 worth of filters annually after the initial purchase. About 75% of customers end up repurchasing the filters annually. The margins for the system and filters are 20% and 80% respectively, and AlphaPure uses a 4-year planning horizon in its strategic planning (ie, it assumes the average customer only lasts 4 additional years after the initial acquisition Internally. AlphaPure uses 1096 as its discount rate. A Calculate the CLV for an average customer for AlphaPure. Please show your calculations for full credit. (5 pts) 0 2 Year Revenue Contribution Retention Rate Expected Profit NPV Cust Acq Cost CLV per Customer
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