1. Tough Fun is a challenge course business that caters to three segments: families (average of 4 people per visit), company departments bringing an average of 12 people per visit, and athletic competitions of 100 people, on average. Customers in the first two segments come in every month, but the athletic competitions occur each quarter. The typical cost to serve each customer in the segments are $60/month, $80/month, and $40/quarter, respectively. The revenues generated from the segments are: $150/month and $250/month, and $400/quarter. Last year, Tough Fun had 500 families, 155 company customers, and 25 athletic competitions. Assuming an annual discount rate of 6%, and retention rates of 70%, 50%, and 85%, respectively, please calculate the following:
   1. CLV for each segment. What is the total value of each segment? (CLV x number in segment) [3]
   2. Suppose the company decides that it would like to invest $300,000 next year on loyalty programs to increase the retention rate. How much would the retention rate need to increase to for each segment if the whole sum were spent in that segment? (Hint: total customers in segment = average number in group x number of groups) [6]
   3. Instead of spending on retention, let us say they are going to spend it to acquire more customers of one segment. They believe that the sum will allow them to target 300, 400, and 200 potential customers, respectively. How many customers do they have to acquire to breakeven for the whole $300,000? (Calculate BAR for each segment). [3]
   4. Imagine that growth rates in contribution are different for each segment for this incoming cohort of customers. The growth rates are 15%, 10%, and 5% respectively. They were also able to acquire 300, 400, and 200 more customers respectively, this year. Recalculate CLV for each segment, using the growth rate, and subtracting the amount spent on acquisition. [3]