Please post your analytic plan on how you propose to tackle Q 5 to 9 in You should write a bout half a page
5. Use the following numbers to create a customer LTV chart. Determine the third year LTV
Customers: 746,219; Retention rate 44%; Visits per year 1.2 Growing 20% per year; Average order size $104.40 Growing 10% per year; Marginal costs: 55%; Database and Marketing Costs: 10% of revenue ; Discount rates 1, 1.1, 1.21
6. Introduce a birthday club into the same store as the previous question (No.5) . Show 3rd year LTV. Use these numbers.
Customers: 746,219 Retention rate 64% Visit per year 1.8 growing 20% per year; Average Order Size $110.44 growing 10% per year; Marginal Costs 55%; Database and Marketing costs $10% of revenue; Birthday Club $0.95 per customer. Discount Rates: 1, 1.1, 1.21
7. What is the profit gain from introducing the Birthday Club in the third year assuming 746,219 customers?
8. Add e-mails and website to a retailer using the following numbers and determine 3rd year LTV.
Customers: 746,219; Retention rate 64% flat; Store visits per year 2.1 up 5% per year; Website sales per year 1.9 up 5% per year; e-mail sales per year 1.2 up 5% per year ; Total sales 5.2; Average order size $133.63 up 5% per year. Marginal costs 45% flat; Database and marketing 20% of revenue flat; Discount rates: 1. 1.1, 1.21
9. In the above example, what are the increased third year profits after adding the website and e-mails?
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