Question: Hello, I'm working on the Maru Batting case study and am struggling to find LTV with the information I was given. Question at hand: Considering

Hello,

I'm working on the Maru Batting case study and am struggling to find LTV with the information I was given.

Question at hand: Considering the time value of money and attrition(survival) rates and related lifetime value for each segment, recommend which segment is the most attractive (there are four segments, below is one).

Little Leaguers - 6-15-year-olds, male and female

  • Very large segment
  • 6500/hour
  • Two part-time employees ( 3000/hour) + instructor (3000/hour)
  • 10 hours in the cages per year, typically preseason months of Feb-March
  • Acquisition cost = 1000 to contact each Little Leaguer, 10% regular customers
  • Attrition rate = 25%

Using this information, how can I find LTV? Thanks.

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