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For a typical major carrier in the U.S. cellular industry, customers under two-year contracts generate monthly churn rate of 2% while customers without contracts generate a churn rate of 6%. The advertising cost per gross add is around $90; sales commission paid per subscriber is $100; and handset subsidy provided to the subscriber is $180. The monthly average revenue per unit is $52; and monthly cost-to-serve is $30. Assume the annual interest rate is 5%.
1. Use the formula CLV = M / 1 - r + i - AC to calculate lifetime values for both contract customers and non-contract customers.
2. Use the CLV concept and your calculation results as a financial logic to explain the typical pricing approach used by major carriers.
Developing an IMC plan of Amazon that aims to create awareness and knowledge amongst Singaporean consumers of the ethics involved in buying clothing made from Bangladeshi factories .
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Promotion strategies of the one's own developed website
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Services can be defined as separately identifiable, intangible activities which provide want-satisfaction when marketed to household consumers and/or industrial users.
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