How much are you worth to a given company if you continue to purchase its brand for
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1. Assume that a customer shops at a local grocery store spending an average of $150 a week and that the retailer earns a five percent margin. Calculate the customer lifetime value if this shopper remains loyal over a 10-year lifespan, assuming a five percent annual interest rate and no initial cost to acquire the customer.
2. Discuss how a business can increase a customers lifetime value.
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...
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