Assume the Strategic Finance Team has invested the entire ad…

Assume the Strategic Finance Team has invested the entire advertising budget into digital marketing advertising for Inbound customer acquisition purposes. Given these assumptions: Advertising spend Customer Acquisition Costs (you calculated this in earlier question) Additional Customer Acquired (you calculated this earlier) LTV per customer acquired (from above) What is the LTV of additional customers acquired based on this investment?

In the previous question, you were given: If an Outbound Sal…

In the previous question, you were given: If an Outbound Sales Rep has a yearly quota of $400,000 in sales and an average deal size of $30,000, they are expected to sign approximately 13.33 customers per year to meet their quota.  The approximate costs for a sales rep (all-in) are $300,000, which includes compensation (fixed and variable), additional marketing, back office, and engineering costs.  If Dropbox’s Strategic Finance team spends its remaining budget on hiring Outbound Sales Reps, how many signed new customers could Dropbox expect in return for its investment? 

The Case Analysis portion of this exam is worth 50 points in…

The Case Analysis portion of this exam is worth 50 points in total. You must read this case carefully to understand how cloud-based products (SaaS models) are sold when pursuing inbound and outbound sales model strategies. Focus on: Understanding what the SaaS model is and how it works The main differences between Dropbox’s inbound and outbound sales model Understanding how inbound and outbound sales models are evaluated to determine the best ROI decision.  For questions 1-7, the following case assumptions apply (make sure you note these) Churn Rate of Monthly Plan (Annualized): 30% Churn Rate of Annual Plan: 10% Gross Margin: 90% Inbound Sales Mix: 80% Annual/20% Monthly Outbound Sales Mix: 100% Annual Average Seats per Deal: 10 seats (inbound), 250 seats (outbound) Inbound Costs per Ad Click: US$8 Inbound Ad Click to Purchase Conversion Rate: 1% Outbound Discount from List Price: 20% Outbound Quota per Sales Rep: $400,000 Outbound Cost per Sales Rep (“All In”): $300,000 Case Dropbox_Go to Market Sales Strategy.pdf