In this Required Assignment you have the opportunity to apply concepts of business case development to Upcell Inc., the fictitious telecommunications company analyzed earlier in the program.
Begin by reviewing this case study download . Then, assuming you are developing a proposed loyalty program for the company, answer the following questions:
1. What is the projected loyalty value that the proposed loyalty program would generate from your target customer segment in the first five years?
2. If the criterion for going ahead with your proposed loyalty program is positive loyalty value from the target customer segment in the first five years, would you decide to move forward with it? Why or why not?
Assume the following:
• You have selected the “Busy and Social” customer segment as your primary target segment (see case study).
• The average profit on revenue from this customer segment is 38%.
• The customer value proposition for your proposed loyalty program is as follows:
Each minute of mobile voice time used or MB of data transmitted or stored earns $0.001 of redeemable value that can be used to pay the customer’s Upcell bill or used to purchase Upcell products and services.
• As a benefit of the program, there is a dedicated 800-number help line available only to members for prompt customer support 24 hours a day, 7 days a week, 365 days a year.
In addition to the information that you already know about the company, its business profile and this customer segment, your team projects the following for the proposed loyalty program:
• Your team projects that 60% of the customers in your target segment would join the loyalty program and stay active
• The average annual lift in revenue from program members would be 15%
• The active program members would earn a total of $24,000,000 annually in redeemable value
• 92% of the redeemable value earned would actually be redeemed (there would be an 8% breakage rate)
• The cost of operating the dedicated help line would be $50,000 per year
• The cost to develop and launch the program would be $4,000,000
• The annual cost to manage, execute and market the program would be $2,500,000.
Type of service: Writing incl. calculations
Type of assignment: Essay
Number of Sources: 0
Academic level: Master’s
Paper Format: Harvard
Line spacing: Double
Language style: US English