Marquette Expected Customer Lifetime Value Retail Relay Case Study Questions
Description
Instructions
After reviewing chapters 5 and 9, answer the following questions related to the Retail Relay Case Study starting on page 112.
The case will provide you hands-on experience in computing basic customer lifetime value (CLV) metrics and analyzing the potential profitability of direct-to-consumer promotions. Using the three supplementary Excel data spreadsheets (if necessary), respond to the five assignment instructions shown below.
MAKE SURE TO FIRST DOWNLOAD THE SPREADSHEETS, AND THEN LAUNCH THEM IN EXCEL (i.e., clicking on the data set from the launch window will only show the data; you cannot perform calculations, sorts, etc. unless you download it and launch in Excel)
Assignment Instructions:
What is the expected customer lifetime value of a newly acquired customer? Use an account discount rate of 10%
Do you think this value is likely to increase or decrease as Retail Relay grows into a larger company?
Is the Valpak promotion worth pursuing at a larger scale?
- What about door-hanger coupons?
- Would you recommend any adjustments to the company’s social media marketing campaign?
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