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An internet service provider charges $19
An internet service provider charges $19.95 per month. If the firm cuts retention spending from $6 to $3 annually, attrition is expected to go up 1% per month. Should they do it?
Variable = $1.50 per customer per month
Marketing spending is $6/year
Retention rate = .995%
M= 18.45
R = .50
d= .01
CLV = $1209
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