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Business, 31.07.2021 21:40 dhdcchj

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]
[Select ]
Invest to raise the lower retention rate brand by 5 percentage points
Split the investment and raise the higher retention brand by 2.5 points and the lower retention rate brand by 2.5 points
Invest to raise the higher retention rate brand by 5 percentage points
Answer depends on the churn rates
Same results whether the investment is made in the higher retention rate or the lower retention rate brand

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Answers: 1

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