Topic: CREATING CUSTOMER VALUE, SATISFACTION, AND LOYALTY 1. Consider the lifetime value of customers (CLV). Choose a business and show how you would go about developing a quantitative formulation that captures the concept (or in other words, show what exactly You are going to calculate in order to receive lifetime value of customers (CLV) based on the business You have chosen). Note: When accomplishing this task please consider that Customer Lifetime Value (CLV) describes the stream of future earnings company expects to receive from one customer (person, household, or company) over the customers lifetime purchases minus the stream of costs company normally incurs of attracting one customer, selling and servicing one customer (including appropriate discount rate companies usually offer to their customers). 2. A profitable customer is a person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the companys cost stream of attracting, selling, and servicing that customer. Customer Profitability Analysis stays the following: Customer 1 is very profitable. Customer 2 is mixed profitability. Customer 3 is a losing customer. What can the company do about customers 2 and 3?