(a) How do you think Blue Apron has defined customer retention rate in this analysis? What are the alternative possibilities for measuring customer retention for Blue Apron? What are the difficulties in measuring customer lifetime value (CLV)?
(b) What are the advantages and disadvantages of adopting a two-segment approach to measuring customer profitability and customer retention? How could Blue Apron use the one and two segment customer profitability and retention analysis in its customer portfolio management?
(c) The case suggests Blue Apron needs to move from measuring customer lifetime value (CLV) to managing CLV. What changes would best enhance the net present value of existing customers as well as the quantity and quality of future customers? How should the next $100 million dollars in the marketing budget be spent?