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  • Mar 6815: Advanced Marketing Management

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    Shi Nya
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    This document outlines an assignment asking students to: 1. Create a table showing values like annual contribution, expected lifetime, acquisition cost, churn rate, and customer lifetime value for both elderly and younger patrons. 2. Answer questions about whether unlimited resources should target both types of patrons based on CLV. Determine how many of each type of patron would need to be acquired to meet a goal and the associated acquisition costs. Suggest tactics to alter the CLV model assumptions and calculate new CLV values. Students are asked to limit their write-up to no more than one page and will be graded based on correctly calculating CLV values and interpreting their meaning for acquisition and retention strategies.

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    CLV (2)

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    This document outlines an assignment asking students to: 1. Create a table showing values like annual contribution, expected lifetime, acquisition cost, churn rate, and customer lifetime value for both elderly and younger patrons. 2. Answer questions about whether unlimited resources should target both types of patrons based on CLV. Determine how many of each type of patron would need to be acquired to meet a goal and the associated acquisition costs. Suggest tactics to alter the CLV model assumptions and calculate new CLV values. Students are asked to limit their write-up to no more than one page and will be graded based on correctly calculating CLV values and interpreting their meaning for acquisition and retention strategies.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
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    28 views1 page

    Mar 6815: Advanced Marketing Management

    Uploaded by

    Shi Nya
    This document outlines an assignment asking students to: 1. Create a table showing values like annual contribution, expected lifetime, acquisition cost, churn rate, and customer lifetime value for both elderly and younger patrons. 2. Answer questions about whether unlimited resources should target both types of patrons based on CLV. Determine how many of each type of patron would need to be acquired to meet a goal and the associated acquisition costs. Suggest tactics to alter the CLV model assumptions and calculate new CLV values. Students are asked to limit their write-up to no more than one page and will be graded based on correctly calculating CLV values and interpreting their meaning for acquisition and retention strategies.

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    © All Rights Reserved
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    of 1

    MAR 6815: ADVANCED MARKETING MANAGEMENT

    Assignment: Customer Lifetime Value

    This assignment asks you to respond to the following questions/tasks based on the scenario found at the
    beginning of the Excel spreadsheet found on Canvas. You should put yourself in the position of Tess.
    1. Create a table that shows the following values for both an elderly patron as well as a younger
    patron:
    a. Annual contribution (factor in variable costs)
    b. Expected lifetime
    c. Acquisition cost
    d. Churn rate
    e. Retention rate
    f. CLV for the simple model
    g. Discount rate (use 5%)
    h. CLV for the advanced model
    2. Answer the following questions:
    a. If Tess has unlimited resources, should she target both types of women (yes or no)?
    Why or why not (think about the absolute values of the two CLVs)?
    b. How many younger patrons, and how many elderly patrons, would Tess need to attract
    in order to reach her goal? What would be the total acquisition costs for each group? Is
    it realistic to attract just one of the groups in order to meet her goal? What could Tess
    do to change the parameters of the model in order to acquire the best mix of new
    patrons? That is, what tactics could be applied in the real world in order to alter the
    assumptions of the model (L/CR/RR, R, M, AC)? What changes would this have on the
    new CLV – calculate the new value(s). What do they tell you about CLV? How do they
    help Tess understand how to achieve her goal in a more efficient manner?

    Limit your write-up to no more than one 8.5x11” single-spaced page, with one inch margins, with 11-
    point font. This assignment is worth 10 points. This assignment is due no later than the time and date
    specified on the syllabus by posting it to Canvas.

    The quality of your grade will be based upon how well you calculate values for customer lifetime value,
    and how well you interpret their meaning with regards to formulating strategies for customer
    acquisition and retention.

    Assignments may lose points for any the following issues:


     More than one page.
     Incorrect format (8.5” x 11” only).
     Missing student name on document.

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