During a budget meeting, your supervisor states that your customers have a CLV of $270 and she

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Question:

During a budget meeting, your supervisor states that your customers have a CLV of $270 and she wants to know what your recommendation is on how much you should spend on acquisition and retention. Based on this information alone, which answer aligns the most with theory?

a. Recommend spending exactly $270.

b. Recommend spending 40% of CLV.

c. Recommend spending no more than $270.

d. Recommend spending 50% on acquisition and 50% on retention.