These spreadsheet exhibits relate to the case Maru Batting Center: Customer Lifetime

Value, Case #KEL688.

©2012 by the Kellogg School of Management at Northwestern University. This case was
developed with support from the December 2009 graduates of the Executive MBA
Program (EMP-76). This case was prepared by Evan Meagher ’09 under the supervision of
Professor Julie Hennessy. Cases are developed solely as the basis for class discussion.
Cases are not intended to serve as endorsements, sources of primary data, or illustrations
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 Elite Elite
Little Summer Ballplayers Ballplayers Entertainment
Leaguers Sluggers (Print Ad) (Party) Seekers
Contact Cost ¥1,000 ¥1,500 ¥300 ¥12,500 ¥50
Response Rate 10.0% 15.0% 0.5% 25.0% 2.5%
Acquisition Cost ??? ??? ??? ??? ???

Workers Needed 2 1 1 1 2
Worker Labor Cost ¥1,500 ¥1,500 ¥1,500 ¥1,500 ¥1,500
Instructors Needed 1 0 1 1 0
Instructor Hourly Labor Cost ¥3,000 N/A ¥4,500 ¥4,500 N/A
Total Cost Per Hour ??? ??? ??? ??? ???

Hourly Price Charged ¥6,500 ¥3,000 ¥7,500 ¥7,500 ¥4,000

Hourly Margin ¥ ??? ??? ??? ??? ???
Hourly Margin % ??? ??? ??? ??? ???
Annual Hours 10.0 4.0 20.0 20.0 1.5
Annual Margin ¥ ??? ??? ??? ??? ???

Retention Rate 75.0% 50.0% 60.0% 60.0% 35.0%

Interest Rate 10.0%
 0 1 2 3 4 5

1 2 3 4 5 6
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Little Leaguers
Hourly Revenues ¥6,500
Hourly Costs
Hourly Margin
# of Annual Hours 10
Annual Margin ¥
Survival Rate 100.0%
Customer Acquisition Cost
Annual Profit
NPV of Annual Profit
Cumulative Profit to Date
NPV of Cumulative Profit to Date

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Summer Sluggers
Hourly Revenues ¥3,000
Hourly Costs
Hourly Margin
# of Annual Hours 4
Annual Margin ¥
Survival Rate 100.0%
Customer Acquisition Cost
Annual Profit
NPV of Annual Profit
Cumulative Profit to Date
NPV of Cumulative Profit to Date

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Elite Ballplayers (Print Ad)
Hourly Revenues ¥7,500
Hourly Costs
Hourly Margin
# of Annual Hours 20
Annual Margin ¥
Survival Rate 100.0%
Customer Acquisition Cost
Annual Profit
NPV of Annual Profit
Cumulative Profit to Date
NPV of Cumulative Profit to Date

Year Year Year Year Year Year

Entertainment Seekers
Hourly Revenues ¥4,000
Hourly Costs
Hourly Margin
# of Annual Hours 2
Annual Margin ¥
Survival Rate 100.0%
Customer Acquisition Cost
Annual Profit
NPV of Annual Profit
Cumulative Profit to Date
NPV of Cumulative Profit to Date
 6 7 8 9 10 11 12 13 14 15

7 8 9 10 11 12 13 14 15 16
Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16

Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16

Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16

Year Year Year Year Year Year Year Year Year Year
 16 17 18 19 20 21 22

17 18 19 20 21 22 23
Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23

Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23

Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23

Year Year Year Year Year Year Year