Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Bbva compass marketing resource allocation case study analysis

01/05/2021 Client: muhammad11 Deadline: 2 Day

Case Analysis
Subject
Business Finance

Question Description
Please: answer ALL questioBBVA Compass Assignment (30 points) Read the BBVA Compass case and using the information provided in the case and in this assignment answer all the questions below. 1. List all the steps involved in the customer acquisition journey for display and search ad acquisition. (6 points) 2. What is the acquisition cost of a customer acquired through display ads? (6 points) 3. What is the acquisition cost of a customer acquired through search ads? (6 points) 4. Should BBVA stop using either display or search ads? Why or why not? Use data or information from the case to defend your answer. (2 points) 5. Assume that the average banking customer has a CLV of $800 and a lifetime of 5 years as stated by Sottosanti on page 3. The cost to acquire a customer is $100 and the discount factor is 8%. What is the expected annual margin from this customer? (2 points) 6. Using the annual margin calculated in 5 and the discount factor and the acquisition cost given in 5, calculate the CLV of a customer acquired via a branch. Use the retention rate provided in the case for traditional bank customers. (3 points) 7. If BBVA wants the CLV of a customer acquired via display ad to equate to the CLV of a customer acquired via a branch, what is the annual margin needed from a display ad customer? Assume the same discount rate as before. (3 points) 8. How would you allocate the budget to off and online acquisition methods? Explain your answer. (2 points) Tips: 1) Develop an argument. Have a clear argument or strategy. 2) Know your audience and the purpose of your writing. 3) Simplify your writing. don't write sentences are wordy and way too long. Keep things simple. 4) Refer back to the evidence and facts in the case. 1 CLV Sample Problems Michelle is the director of marketing for M&J Jewelry, a direct-mail jewelry business that sells high-end costume jewelry via monthly catalogs. She wants to better understand the lifetime value of the customers who buy jewelry from M&J so that she can determine whether she should implement specific marketing initiatives aimed at increasing the retention rate of some portion of her customer base. She asks the head of her accounting department for some data to support her CLV analysis and he gives her the following information: ▪ ▪ ▪ ▪ ▪ ▪ ▪ The average catalog customer spends $250 per purchase. The margin on a sale is 40%. The average customer buys from the catalog 4 times per year. The average annual cost of mailing the catalogs is $9.60 per prospect per year. The response rate for the catalog (i.e. the rate of customer acquisition) is 2%. The retention rate is 65% year over year. Our normal annual discount factor is 10%. 1. What is the cost of customer acquisition (assume that acquisition occurs BEFORE any transaction actually occurs)? 2. What is the annual margin for a customer? 3. What is the expected lifetime of a customer? 4. Calculate the CLV of a customer assuming no annual discount factor. 5. Calculate the CLV of a customer including the discount factor. 6. As a marketer, what could you do to improve the CLV of a customer? 2 1. AC = ($9.60 per prospect per year) / (2% response rate) = $9.60 / .02 = $480 Another way to think about this is that it would take 100 prospects to acquire 2 customers (or 50 prospects to acquire 1 customer), so: $9.60 X 50 = 480 2. Once a customer, average sale is $250, margin is 40%, average orders per year = 4 Margin per transaction = (Selling Price) * (%margin) = $250 * .40 = $100 Margin per year = (margin / transaction ) * (transactions / year) = $100 * 4 = $400 3. Retention rate = 65% Churn rate = 1 – RR = 35% Lifetime = 1 / CR = 2.857 years 4. CLV = m/CR – AC CLV = $400/ (.35) - $480 CLV = $662.86 5. CLV = m * [(1+i) / (i+CR)] – AC CLV = $400 * [(1.1) / (.45)] - $480 CLV = $497.78 6. There are numerous appropriate responses. Any specific tactics that would increase the amount spent per purchase, the number of purchase occasions, the response rate to mailings or reduce the churn rate are all acceptable answers. 3 In the early 2000’s, Rosewood Hotels and Resorts was a privately held company that owned 12 hotels worldwide, each marketed under a unique name.s. Where appropriate, clearly indicate any specific assumptions being made in the analysis. (be concise and concrete no vague language )

INSTRUCTIONS.docx file uploaded as well as the case study.pdf

Also CLV sample problems uploaded make sure you use the correct formulas

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Assignment Hut
Math Specialist
Professional Accountant
Isabella K.
Calculation Master
WRITING LAND
Writer Writer Name Offer Chat
Assignment Hut

ONLINE

Assignment Hut

You can award me any time as I am ready to start your project curiously. Waiting for your positive response. Thank you!

$50 Chat With Writer
Math Specialist

ONLINE

Math Specialist

Hello, I an ranked top 10 freelancers in academic and contents writing. I can write and updated your personal statement with great quality and free of plagiarism

$40 Chat With Writer
Professional Accountant

ONLINE

Professional Accountant

I have read and understood all your initial requirements, and I am very professional in this task.

$43 Chat With Writer
Isabella K.

ONLINE

Isabella K.

I have read your project details. I can do this within your deadline.

$27 Chat With Writer
Calculation Master

ONLINE

Calculation Master

I have read and understood all your initial requirements, and I am very professional in this task.

$40 Chat With Writer
WRITING LAND

ONLINE

WRITING LAND

I will cover all the points which you have mentioned in your project details.

$18 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Golden age retirement planners specializes in providing financial advice - Lotf ch 4 summary - Identify the eight life stages. list the stages of development. - When was pompeii and herculaneum discovered - Bcos marketing - The first step in decision making is - Starbucks blue ocean strategy - Access module 1 textbook project - Why do males inherit colorblindness from their mothers - Answer to essay-200 words minimum (RZG) - Swot analysis of shoes - Reading for writers 15th edition answers - Wileyplus accounting homework answers - Legal issues with facebook - Quality of life self care wheel essay - Physics questions 3 - Essay - Us pledge of allegiance pdf - Casio calculator fx 82au plus - Steep turns common errors - Laminar air flow wikipedia - How to make a genogram - West end clinic rossington - Summary of the yellow face - Closely stacked flattened sacs plants only - What is text dependent analysis - After watching the video clip, answer the following questions: - Discussion - University of warwick insite - Mcdonalds continuous improvement - Do you think everyone uses gantt charts properly - Resume help - Exploring dot plots and landmarks answers - Cfi lesson plan template - Partially amortized loan balloon payment - Imb reward saver account - Saint louis university spain - Soap note for crohn's disease - Why change management is in service transition - Cryptography15 - Nursing Soap note - Difference between majirel and majirouge - Saksfirst card credit limit increase - Life of pi author's note pdf - Power Point Assigment - Hp rx2660 end of life - Week 3 discussion - Ideal Health Care System - There's a sea in my bedroom worksheets - WRK 100- WEEK 11-OPEN DISCUSSION - Rolling wave planning vs progressive elaboration - Assignment: The Impact of Nursing Informatics on Patient Outcomes and Patient Care Efficiencies - Managing uncertainty in supply chain safety inventory - Ransom david malouf pdf - Words their way sort answer keys - Broadmeadows community legal centre - Section 5 - 1 chloro 1 methylcyclopentane - GOVT 480 DB FORUM 3 THREAD DUE 9/11/2020 - Swot bivariate strategy matrix - The humanistic tradition volume 1 7th edition pdf free - Laying egger laminate flooring - Gatic covers and frames - Pfsense configuration step by step pdf - How to make recommendation report - Faith ringgold god bless america - Byte stuffing in java - When balance sheet credits exceed the debits on the worksheet - Principle of serological test - The man to send rain clouds answers - Assignment - Www printeron com ddl bear - Module 2 Assignment - Toyota business level strategy - Muslim Molvi 7340613399 OnLine No 1 FaMOUs VashIKaraN sPecIaLIsT IN Patiala - Liberty university letter of recommendation - Macbeth whole play summary - Brisbane correctional centre postal address - Multimodal Personal Narrative - How to write an ode - Organizational Behavior week 2 discussion - Two types of data storage ashford university - Blue eyes brown eyes experiment psychology - Marles wood car park - 155.2 lbs to kg - Leverage adjusted duration gap - Theory of bureaucratic caring - The arrival shaun tan chapter 3 summary - Fisher control valve sourcebook - The audiology department at randall clinic offers - Narrative inquiry in language teaching and learning research - Write a paper analyzing the principles of multifactorial inheritance and the role of the Nurse Practitioners in the assessment, early detection, and treatment of different genetic diseases. 2 pages APA style. - Zhou jichang lohans giving alms to beggars - 1/5 - Reg macmillanhighered launchpad student login - Case study - You are a Malaysian trainer who is a highly sought out expert in the area of cross-cultural negotiation. The Communications Director of a large company has asked you to write an article on ‘Guidelines for cross-cultural negotiations in India’ for their business magazine. - Leadership style of google ceo - Glendore child care centre - Good life rv des moines bevington