Question: CLV Analysis - Interactive Connect Assignment to calculate your calculate your lifetime value for an offering to which you have developed loyalty. In your calculation,

CLV Analysis - Interactive Connect Assignment to calculate your calculate your lifetime value for an offering to which you have developed loyalty. In your calculation, consider the average amount you purchase (AMP) annually and the likelihood of you being retained as a customer next year (assume this retention rate remains the same each succeeding year). Also, assume: o Your acquisition cost is $100 o Your average annual customer cost is 60% of your revenue o The discount rate is .05. I presume each customer will visit the shop for service or parts on average twice per year spending an average of $33 per visit. My average net profit is 46% of revenue. Business analysis indicates I will experience a significant decrease in customer number in the first year as by business is evaluated. However, customer retention numbers will slowly increase from years 2 through 5 as my reputation in the community grows. Reference the Full CLV table below for details on my analysis. In addition to your calculation, be sure to identify the product/service you chose and provide a brief explanation of how you came up with your calculation. Next, identify and describe two recent factors (one internal and one external to the company) that might positively effect your CLV and then do the same thing for two recent factors that might have a negative impact. Recalculate your CLV considering the positive factors and then separately for the negative factors. Lastly, briefly summarize your CLV analysis with some suggestions for the company

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