Homework Help is Here – Start Your Trial Now!
Business
Accounting
YZ LTD Charges INR 250 per Month to its Subscribers. It's margin per customer is 60%. It spends INR 600 per Year per customer as retention cost. XYZ Ltd works at discount rate of 5% and is able to retain 90% customers on yearly basis 1. What is CLV of an XYZ Ltd Customer? 2. If XYZ Ltd spends INR 1500 in acquiring one customer, what is net CLV of XYZ Ltd customer? 3. If XYZ Ltd increases its monthly subscription rate to INR 300, customer retention rate drops to 80%. Is it a profitable move? • If XYZ Ltd doubles its spend on retention cost, its customer retention rate improves to 92%. Is it a profitable move?

YZ LTD Charges INR 250 per Month to its Subscribers. It's margin per customer is 60%. It spends INR 600 per Year per customer as retention cost. XYZ Ltd works at discount rate of 5% and is able to retain 90% customers on yearly basis 1. What is CLV of an XYZ Ltd Customer? 2. If XYZ Ltd spends INR 1500 in acquiring one customer, what is net CLV of XYZ Ltd customer? 3. If XYZ Ltd increases its monthly subscription rate to INR 300, customer retention rate drops to 80%. Is it a profitable move? • If XYZ Ltd doubles its spend on retention cost, its customer retention rate improves to 92%. Is it a profitable move?

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 6P
See similar textbooks
icon
Related questions
Question
XYZ LTD Charges INR 250 per Month to its Subscribers. It's margin per customer is 60%. It spends INR 600 per Year per customer as retention cost. XYZ Ltd works at discount rate of 5% and is able to retain 90% customers on yearly basis 1. What is CLV of an XYZ Ltd Customer? 2. If XYZ Ltd spends INR 1500 in acquiring one customer, what is net CLV of XYZ Ltd customer? 3. If XYZ Ltd increases its monthly subscription rate to INR 300, customer retention rate drops to 80%. Is it a profitable move? • If XYZ Ltd doubles its spend on retention cost, its customer retention rate improves to 92%. Is it a profitable move?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Tax loss carryovers
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Finance
ISBN:
9781285660516
Author:
EHRHARDT
Publisher:
Cengage
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS