Mini analysis / e-commerce | Marketing homework help

  1. In less than a page, build out a small paragraph :
    • – Issue: What is the problem? [In this case, the problem is how do we improve CLV for our company?]
    • – Rule: What is the way we can think about the problem/what is the rule we can use to address the problem?
    • – Analysis: What do we know about our context? How do we think about and apply the rule to our problem?
    • – Conclusion: What do we do going forward? What are our next steps?

For this activity, your problem is as follows:
You are a customer retention analyst at a midsized enterprise that sells a variety of products for pregnant mothers to be. During the ~9 months of pregnancy, you do relatively well in sales but after the birth customers leave. After that time most customers leave. The company’s current CLV (https://www.qualtrics.com/experience-management/customer/customer-lifetime-value/) is around $500 on average, the CAC (https://corporatefinanceinstitute.com/resources/knowledge/accounting/customer-acquisition-cost-cac/) is around $150 on average, and the Retention Costs (https://www.invespcro.com/blog/customer-acquisition-retention/) are $50 on average. Products right now focus mainly on the “Baby Boxes” subscription for moms every month of their pregnancy full of supplies for mom and baby at about $50 a month. Current acquisition strategies focus primarily on general audience paid advertisements on social media and google. Retention strategies focus mostly on the “Weekly Mom Updates” email newsletter. Currently, 50% of all sales come as gift subscriptions. The subscription boxes have an average of 4.6 ratings out of 5, and the company has a sizable and active online community. 

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