Question: When comparing the Lifetime Value of customers, how does the time it takes to reach attrition (NPV of annual profits falls below 100) factor into

When comparing the Lifetime Value of customers, how does the time it takes to reach attrition (NPV of annual profits falls below 100) factor into the decision to pursue a customer segment? If segment A reaches attrition in Year 9 with a cumulative lifetime value of 5,000, and segment B reaches attrition in Year 12 with a cumulative lifetime value of 10,000, which is the better segment to pursue?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Marketing Questions!

Can you show the steps to solve the NPV of annual profit, Cumulative of annual profit, and NPV of Cumulative annual profit? Taking into account the time value of money and assuming that 100 percent...

BLC Inc. is a medium-sized manufacturing company based in the UK. The company operates mainly in the London area and is based in Peterborough. At a recent board meeting, the company decided to expand...

Please create an excel spreadsheet with formulas for requirement 5 (pages 24-27)and requirement 6 (pages 28-31)only. Please submit in excel format. Both questions and answers are provided for...

(1) Financial Ratios Referencing this week?s readings and lecture, what are the limitations of financial ratios? Classify your answer into at least the following categories: liquidity ratios,...

Please process at your earliest convenience. I have enclosed the attached document and other required documents. Thank you for your help! Consider how Kyler Valley Spring Park Lodge could use capital...

Read: Magids, Scott, Alan Zorfas, and Daniel Leemon (2015). "The New Science of Consumer Emotions," HBR , November 1.1. The article makes much of quantifying consumer emotions for analysis. Howthe...

I need help with writhing a financial statement analysis report about Company Sprint Airline. I have attached the documents including the overview of the project and the template of it and example of...

Case Summary Read the Discussion Assignment 2-1 on p.34 of the text Technology Adoption by Small Manufacturers. Consider yourself as a health care leader in a small not-for-profit hospital. You have...

Explore the differences in the japanese and american investment decision-making processes and the conflicts that arise from there. TOKYO DISNEYLAND AND THE DISNEYSEA PARK: CORPORATE GOVERNANCE AND...

I need help answering two essay questions which are due 10/18 Weds. You must choose 2 out of 4 essay topics to write on and have a 2 hr time limit once we start. I will provide slides and supporting...

Guide Question: What is truth? How you tell the truth to others?

The room-temperature tensile strengths of pure lead and pure tin are 16.8 MPa and 14.5 MPa, respectively. (a) Make a schematic graph of the room-temperature tensile strength versus composition for...

Product Costing at Fine Foods: Is It a Symptom or the Problem?

1. Three different methods for assembling a product were proposed by an industrial engineer. To investigate the number of units assembled correctly with each method,30 employees were randomly...

3-37. You want your boss to approve your plan for hiring two new people.

3-36. A letter with a final request to settle a delinquent debt?

Cost-sharing is used to combat moral hazard at the expense of equity.