Business, 31.07.2021 21:40 Maddi1144

Imagine you are directing two brands: Both brands have the same contribution margins and same risk levels
• One brand has a low retention rate (30%) and the other a high retention rate (80%)
You have enough resources to fund a marketing campaign to raise retention rates by 5
percentage points.
Which is the more profitable approach? (Select]
Why? [Select)
Tip: C
[ Select)
The lower retention brand's churn will increase exponentially over time.
The lower retention brand has more churn.
The increase in the number of customers retained each year is more for the lower retention brand.
The increase in the number of customers retained each year is more for the higher retention brand.
Churn rates are the same for both brands.

Answers: 3

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