Question: CLV ($) = Contribution Margin * Retention Rate % 1 + Discount Rate (%) - Retention Rate (%) 6. Calculate the Customer Lifetime value (CLV)

CLV ($) = Contribution Margin * Retention Rate % 1 + Discount Rate (%) - Retention Rate (%) 6. Calculate the Customer Lifetime

CLV ($) = Contribution Margin * Retention Rate % 1 + Discount Rate (%) - Retention Rate (%) 6. Calculate the Customer Lifetime value (CLV) per customer? Based on the following data? (10 Points) A phone company charges $49.95 per month. Variable costs for the account are $4.50 per month. The marketing spend is $9.00 per year; its attrition rate is 0.5% per month. At a monthly discount rate of 1%, what is the CLV

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

John and Daphne are saving for their daughter Ellen's college education. Ellen just turned 10 (at t = 0), and she will be entering college 8 years from now (at t = 8). College tuition and expenses at...

Calculating CLV for Recurring Relationship 1. Shields Communications, a wireless communications provider based in Michigan, wants to determine CLV of their subscribers. A summary of relevant...

Question 1: Question 2: American Express is thinking to do a customer acquisition campaign, in which they plan to offer $500 to anyone who open a new Platinum card account. Does it make sense for the...

The CEO asks the chief marketing officer to compute customer lifetime value (CLV) for catalog customers and online customers. The following information pertains to the company's operations in the...

n=number of years retained: 6 Cost of capital: 0.2 Initial acquisition cost: $400 r=Retention rate for each of n years 0.8 Cost of capital=i Data table: Mt=margin from customer year 1 M1 $260 M2 370...

Interactive Health, Inc., (IH) is one of almost 300 manufacturers in the gym and exercise equipment manufacturing industry and is a new player in the interactive home fitness sector in the United...

https://www.youtube.com/watch?v=GPSysUOV240 Because there are many ways to calculate customer lifetime value (CLV), this exercise uses a spreadsheet to perform the calculations for you. Follow the...

Calculate Customer Lifetime Value 1 ) ?If a typical restaurant customer visits the restaurant once per month and spends $ 3 0 ?per visit over an average lifetime of 1 0 ?years, what is the average...

Excel Spreadsheet CVL Analysis Using Excel to Calculate Customer Lifetime Value to calculate your calculate your lifetime value for an offering to which you have developed loyalty. In your...

Calculate CUSTOMER LIFETIME VALUE for questions A, B & C. customers 2020: 18 (3 were lost) new customers: 5 customers 2021: 20 sales 2021: $382,550.00 repurchase rate: 40% A) Using the Retention Rate...

Regal Resources owns a 58% interest in a mineral claim. Yukon Explorations owns the remainder. If Regal sells one-fifth of its interest for $1.2 million, what is the implied value of Yukons interest?

36) Which of the following yield curves would most likely predict a downturn in the economy? A) B) 8% 7% 6% 3% 2% - 1%-/ 5 10 5 10 25 15 20 Time to Maturity (in years) 20 15 25 Time to Maturity (in...

Multiple Choice 2 . 5 points An American company today invests some of its spare cash in a Hungarian money marlet account that will earn 8 percent for two months. Which of the following if it lappens...

d . Compute adjusted ROA ( assume a statutory tax rate of 2 2 % and pretax net interest expense of $ 1 5 2 ) . Note: Perform this computation from a consolidated perspective. Note: 1 . Select the...

6. How does the slope of a budget line illustrate opportunity costs and trade-offs? How does a budget line illustrate scarcity and the effect of limited incomes? LO1.4

11. last word Studies indicate that married men on average earn more income than unmarried men of the same age and education level. Why must we be cautious in concluding that marriage is the cause...

7. What are economic resources? What categories do economists use to classify them? Why are resources also called factors of production? Why are they called inputs? LO1.5