(Customer Lifetime Value) -Please provide calculation with explanation ABC Prime Company Charges INR.250 per Month to...
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(Customer Lifetime Value) - Please provide calculation with explanation
ABC Prime Company Charges INR.250 per Month to its Subscribers. It's margin per customer is 60%. It spends INR.600 per Year per customer as retention cost. ABC Prime Company works at discount rate of 5% and is able to retain 90% customers on yearly basis
- What is CLV (Customer Lifetime Value) of ABC Prime Company Customer?
- If ABC Prime Company spends INR 1500 in acquiring one customer, what is net CLV (Customer Lifetime Value) of ABC Prime Company Customer?
- If ABC Prime Company increases its monthly subscription rate to INR 300, customer retention rate drops to 80%. ls it a profitable move? Please provide calculation with explanation.
- If ABC Prime Company doubles its spend on retention cost, its Customer retention rate improves to 92%. Is it a profitable move? Please provide calculation with explanation.
Related Book For
Engineering Economy
ISBN: 978-0133439274
16th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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