After reading SMM Chapter 8, 'Creating Valuable Customers', calculate the CLV for the customer in segments A, B, and C, and state which customer will have a higher lifetime value. Assume identical customer acquisition costs across all segments. Show your calculations as to how you arrived at your answer. Customer in Segment A Customer in Segment B Customer in Segment C Stays active in a market for N=3 years Gross margin $17,000 in year 1 $10,000 in years 2-3 Retention rate = 80 % Firm discount rate = 10%. Stays active in a market for N=3 years Gross margin $8,000 in years 1-3 Retention rate = 80 % Firm discount rate = 10%. Stays active in a market for N=3 years Gross margin $17,000 in year 1 $10,000 in years 2-3 Retention rate = 90 % Firm discount rate = 10%

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To calculate the Customer Lifetime Value CLV for each customer segment we need to use the formula CL... View the full answer