The MRK519 class provides uber type monthly driving services in the GTA. The class spends $200,000 on an advertising campaign to reach an audience 20,000 people. The average driver makes $450 per month. The plan is an auto-renewing subscription, but they have a churn rate of 7.5%. Variable costs are $250 per month. They spend $100/year on social media ads and $50 per year on banner advertising. The discount rate is 2.5%.

1. What is the CLV of the customer (rounded to ZERO decimal places)? (2 marks)
2. Why is CLV an important metric for marketers? (2 marks)