Company A is re-evaluating its operations, especially in the Northeast. In this region, it costs Company A $372 to acquire one new retailer customer, and the company spends an average of $113 per year to connect with and retain existing customers. A typical retailer in the Northeast will buy $1,850 worth of soap and related goods from Company A in a year--ordering goods where Company A earns an average 40% contribution margin as percent of revenue. Company A sees a 81% retention rate for its retailer customers in this region, and maintains a corporate discount rate of 12% nationwide. Company A currently serves 77 independent retailers in this region. Calculate Company A's CUSTOMER LIFETIME VALUE for one retailer customer in this region.

Answer rating: 100% (QA)

To calculate the customer lifetime value CLV for one retailer customer in the Northeast region we ne... View the full answer