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using the data given asnser the following questions: as well as figuring out the highlighted region What is the customer acquisition cost to Maru Batting
using the data given asnser the following questions: as well as figuring out the highlighted region
H2O A B D Elite Ballplayer Elite Little Summer s (Print Ballplayer Entertainment 2 Leaguers Slugqers Ad) s (Party) Seekers 3 Contact cost 1,000$1,500 *300 12,500 50 4 Response Rate 10.0%15.0% 5 Acquisition Cost 10,000$10,000 0.5% 6 7 Workers Needed 8 Worker Labor Cost 9 Instructors Needed 10 Instructor Hourly Labor Cost 11 Total Cost Per Hour 12 13 Hourly Price Charged 14 Hourly Margin 15 Hourly Margin \% 16 Annual Hours 17 Annual Margin 18 19 Retention Rate Interest Rate 2 %60,000 50,000 2,0002.5% 21 1 1 1 2 abor 1,50011,50001,50011,50011,5000 A 3,000 22 23 24 What is the customer acquisition cost to Maru Batting Center for the folliwing customers?
A Little Leaguer
A Summer Slugger
An Elite Ballplayer if MBC places the ad in the local baseball enthusiasts magazine
An Elite Ballplayer if MBC purchases the list and invites all target customers to the gala event
An Entertainment Seeker
2. Without discounting cash flows to take into account the time value of money, how soon will MBC break even on the following customers? In all cases, assume that revenues and variable costs to staff the cages occur on an ongoing basis but that the acquisition costs are a one-time event.
A Little Leaguer
A Summer Slugger
An Elite Ballplayer if MBC places the ad in the local baseball enthusiasts magazine
An Elite Ballplayer if MBC purchases the list and invites all target customers to the gala event
An Entertainment Seeker
3. Taking into account the time value of money and assuming that 100% of a customer segment will have experienced attrition once the net present value of annual profits per customer falls below 100, what is the lifetime value to MBC of the following customers? Assume that a customer's lifetime extends up to and including the year in which the net present value of annual profits falls below 100.
A Little Leaguer
A Summer Slugger
An Elite Ballplayer if MBC places the ad in the local baseball enthusiasts magazine
An Elite Ballplayer if MBC purchases the list and invites all target customers to the gala event
An Entertainment Seeker
4. Which is the most attractive customer segment for MBC to target? Why?
Prepare a short report to MBC with your recommendation (question 4), backing it up with data (questions 1-3). Think carefully about the best arguments you can make, and only use facts and data from the case.
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