Question: please help 19 In this example, the following assumptions have been made The average customer cost is $7 (C) - The profit revenue stream from
In this example, the following assumptions have been made The average customer cost is $7 (C) - The profit revenue stream from the customer is $30 in each period (R) - The discount rate of 10% (r) (start to apply at year 2 ) Retention rate of 75% (p) (start to apply at year 2 ) It costs $20 to acquire a customer (A) The average referral $ is $3 What is the lifetime value of this customer at the end of year 2 and year 5? Year 2: $16, Year 5: $39 Year 2: $21, Year 5: $45 Year 2: $18, Year 5: $40 Year 2: $23, Year 5: $38 Year 2: $24, Year 5: $50
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