Order ID:89JHGSJE83839 | Style:APA/MLA/Harvard/Chicago | Pages:5-10 |
Instructions:
Customer Lifetime Value Calculation Worksheet
I’m working on a marketing practice test / quiz and need support to help me learn.
1: AOL bought customers from CD Now for $60 per customer. CD Now’s annual retention rate was 60 percent, and customers generated $15 of profit per year. Assuming an annual discount rate of 12 percent and that the payment is made at the end of each time period, evaluate AOL’s purchase of CD Now customers. Also assume that the customers do not have any obligation to stay with the company.
Is it worth for AOL to make this purchase of customers? Will it make a profit from these customers? Specify which formula you use for answering this question
2: AOL bought customers from CD Now for $60 per customer. CD Now’s annual retention rate was 60 percent, and customers generated $15 of profit per year. Assuming an annual discount rate of 12 percent. Also assume that the customers sign a contract at the start of their new relationship for one year and make a payment at the start of every time period.
Evaluate AOL’s purchase of CD Now customers. Will it recover the money spent on acquiring these customers? Specify which formula you use for answering this question
AOL does an analysis and finds that spending $10 on each customer improves the retention rate to 80%. Will AOL recover this additional expenditure of $10 on each customer? Specify which formula you use for answering this question.
Calculate the Customer Lifetime Value (CLV) for each customer for the first three years. Show your calculations
Calculate the Customer Lifetime Value (CLV) for each customer for the first three years. Show your calculations
RUBRIC |
||||||
Excellent Quality 95-100%
|
Introduction
45-41 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Literature Support 91-84 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Methodology 58-53 points Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met. |
|||
Average Score 50-85% |
40-38 points More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided. |
83-76 points Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration. |
52-49 points Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met. |
|||
Poor Quality 0-45% |
37-1 points The background and/or significance are missing. No search history information is provided. |
75-1 points Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration. |
48-1 points There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met |
|||
You Can Also Place the Order at www.collegepaper.us/orders/ordernow or www.crucialessay.com/orders/ordernow
Customer Lifetime Value Calculation Worksheet |
Customer Lifetime Value Calculation Worksheet