## In this blog you will find the correct answer of the Coursera quiz Marketing Analytics Coursera Week 3 Quiz mixsaver always try to brings best blogs and best coupon codes

**Practice Quiz on CLV:**

**1. If the retention rate for a customer cohort decreases and that customer generates a positive margin, what will happen to the total net profit for future periods?**

__It will decrease.__

It will increase.

It will remain the same.

**It cannot be determined. Correct**

**2. Fabulous Fitness Gym is trying to figure out how much each of their customers is worth. What is the CLV for an average club membership?**

Monthly membership dues: $160 per person

Variable costs for the membership and retention: $30 per member

Length of the average active membership: 30 months

$5,700

__$3,900__

$130

$4,800

**3. Natural Market, a local farm, provides customers who sign up, a weekly bag of fruits and vegetables.What is the short-term margin for the CLV formula?**

Weekly margin: $25 per customer

Weekly spending on customer retention: $5 per customer

Because we don’t know the retention rate, we can’t calculate the short-term margin.

Because we don’t know the discount rate, we can’t calculate the short-term margin.

$25

__$20__

**4. Ink on Demand provides subscription printer cartridge refills. What is the long-term multiplier?**

Billing: At the beginning of the month

Average monthly net margin: $20

Retention rate (r): 93%

Monthly discount rate (d): 3%

**Hint: **Use the formula for calculating CLV for customers who pay before they use the service.

$20

__10.3__

9.3

$186

**5. Consider this subscription service. What is the CLV for an average customer?**

Billing: End of the month

Monthly margin: $100 per customer

Annual retention spending: $780 per customer

Monthly retention (r): 97%

Discount rate (d): 3%

$17.17

$600.83

__$565.95__

$16.17

**6. Consider this subscription to a video gaming site. What is the CLV for an average customer?**

Billing: Beginning of the month

Monthly margin (M): $150 per customer

Annual retention spending (R): $360 per customer

Monthly retention (r): 96%

Discount rate (d): 2%

$3,121

$2,550

$1,920

__$2,040__

**7. JoJo’s Coffee acquires 100 customers in July. What is the present value of total net profit in August?**

Monthly margin (M): $40 per customer

Monthly retention spending (R): $10 per customer

Monthly retention rate (r): 95%

$4,000

$4,700

__$2,850__

$3,000

Using the formula r*cohort size*(M-R) allows you to forecast August earnings. What would you project earnings to be for September?

8.Question 8

**8. In December, Shirley Snow Plow Services had 50 customers. What is the present value of total net profit in February?**

Monthly margin (M): $75 per customer

Monthly retention spending (R): $0

Monthly retention rate (r): 95%

$3,562.50

$3,750.00

__$3,384.38__

$3,215.16

**9. Virginia Golf Club owns and operates a chain of golf courses. In April, 75 people signed up for a membership. What is the present value of total net profit from April to June for this cohort of golfers?**

Monthly margin (M): $110 per customer

Monthly retention spending (R): $20

Monthly retention rate (r): 80%

$4,320

$20,250

$5,400

__$16,470__

**10. You are trying to maximize CLV based on the following information. How much should you spend on marketing and retention (R) to maximize CLV?**

M = $50

d = .01

If R = $49, then r = 99%

If R = $40, then r = 90%

If R = $30, then r = 75%

If R = $20, then r = 60%

If R = $10, then r = 50%

**Tip: **You can calculate each combination individually to arrive at an answer, but to really hone your understanding of CLV and how the various components interact, I encourage you to set up a spreadsheet (Google, Excel) with the appropriate formulas and play around with the numbers, assuming a spend from 0 to $50 and different retention rates. As a bonus, you can use the spreadsheet on your final quiz!

$30

$10

__$40__

$49

**Week 3 Final Quiz on CLV**

**1. If the discount rate increases, what will happen to the CLV?**

It will increase.

That cannot be determined.

__It will decrease.__

It will remain the same.

**If the retention rate of a customer cohort increases and that customer generates a positive margin, What will happen to the total net profit for future periods ?**

__It will increase__

__It will increase__**2. Palmetto Digital sells a web-based marketing design subscription service and needs to know how much each of their customers is worth. What is the CLV for an average client subscription?**

Monthly subscription cost: $25

Average retention marketing costs per customer: $10 per month

Average length of customer relationship: 40 months

$1,400

__$600__

$1,000

$400

**3. Good Morning provides a office breakfast delivery service. What is the short-term margin for the CLV formula?**

Weekly margin: $20 per customer

Weekly spending on customer retention: $3 per week

Because we don’t know the retention rate, we can’t calculate the short-term margin.

Because we don’t know the discount rate, we can’t calculate the short-term margin.

$20

__$17__

**3. Danny’s Dairy Farm provides a weekly home delivery service. What is the short-term margin for the CLV formula?**

**Weekly margin: $15**

**ANNUAL spending on customer**

**retention: $260 per customer**

**$10**

**4. Luigi and Mario’s pizza provides a subscription weekly meal delivery service. What is the long-term multiplier?**

__14.57__

$364.25

$25

13.57

**5. Consider a weekly cleaning service. What is the CLV for an average customer?**

Weekly margin: $80

Annual retention spending: $1040

Weekly retention (r): 96%

Discount rate (d): 2%

__$960__

$1,020

$16

$17

**5. Consider a weekly cleaning service. What is the CLV for an average customer?**

**Billing: End of the week**

**Monthly margin: $300**

**Annual retention spending: $300**

**Monthly retention (r): 90%**

**Discount rate (d): 5%**

__$1, 925.00__

**6. Consider this subscription service for time in a shared office space. What is the CLV for an average customer?**

Billing: Beginning of the month

Monthly margin (M): $200 per customer

Annual retention spending (R): $600 per customer

Monthly retention (r): 95%

Discount rate (d): 3%

-$6,800

$3,400

__$1,931.25__

$1,781.25

**6. Consider this streaming music subscription service. What is the CLV for an average customer?**

**Billing: Beginning of the month**

**Monthly margin (M): $2 per customer**

**Annual retention spending (R): $12 per customer**

**Monthly retention (r): 50%**

**Discount rate (d): 2%**

**$1.96**

**$1.96**

**7. In May, Gorgeous Gowns acquired 500 customers. What is the present value of total net profit in September?**

Monthly margin (M): $125 per customer

Monthly retention spending (R): $25

Monthly retention rate (r): 50%

$25,000

__$3,125__

$6,250

$12,500

**8. In June, Sharp internet services had 10,000 customers. What is the present value of total net profit in September?**

Monthly margin (M): $60 per customer

Monthly retention spending (R): $10

Monthly retention rate (r): 75%

__$210,937.50__

$158,203.13

$375,000.00

$281,250.00

**9. In January, 300 people sign up for a dance studio membership. What is the present value of total net profit from January to May for this cohort of dancers?**

Monthly margin (M): $175 per customer

Monthly retention spending (R): $25

Monthly retention rate (r): 70%

__$124,789.50__

$45,000.00

$225,000.00

$10,804.50

**9. In July, 400 people sign up for a monthly music streaming service. What is the present value of total net profit from July to October for this cohort of music lovers?**

**Monthly margin (M): $15 per customer**

**Monthly retention spending (R): $7**

**Monthly retention rate (r): 95%**

__$11,871.60__

**10. You are trying to maximize CLV based on the following information. How much should you spend on marketing and retention (R) to maximize CLV?**

M = $50

d = .07

If R = $25, then r = 75%

If R = $20, then r = 60%

If R = $15, then r = 65%

If R = $10, then r = 50%

If R = $5, then r = 45%

$20

$10

__$15__

$25

**10. You are trying to maximize CLV based on the following information. How much should you spend on marketing and retention (R) to maximize CLV?**

**M = $50**

**d = .05**

**If R = $5, then r = 44%**

**If R = $4, then r = 43%**

**If R = $3, then r = 42%**

**If R = $2, then r = 41%**

**If R = $1, then r = 40%**

**10. You are trying to maximize CLV based on the following information. How much should you spend on marketing and retention (R) to maximize CLV?**

**M = $50**

**d = .05**

**If R = $5, then r = 44%**

**If R = $4, then r = 43%**

**If R = $3, then r = 42%**

**If R = $2, then r = 41%**

**If R = $1, then r = 40%**

__$1.00__