You will work through a complete calculation of customer lifetime value, which is provided over a ten
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You will work through a complete calculation of customer lifetime value, which is provided over a tenyear period with the following assumptions:
that the initialacquisition costper customer is $that the averagecustomer revenuestarts at $ in year one and increases by $ per year customer costs have been set at of revenue therefore, it costs the firm in in year one $ in product and service costs to generate $ revenue only customer revenues and costs are considered up to year with any subsequent revenues being disregarded in the calculation aretention rateof has been used and adiscount rateof has been applied Questions: Work through the calculations on the chart on the next page. What options could be pursued in order to improve final customer lifetime value that is what numbers could increase or decrease to increase the final value?
that the initialacquisition costper customer is $that the averagecustomer revenuestarts at $ in year one and increases by $ per year customer costs have been set at of revenue therefore, it costs the firm in in year one $ in product and service costs to generate $ revenue only customer revenues and costs are considered up to year with any subsequent revenues being disregarded in the calculation aretention rateof has been used and adiscount rateof has been applied Questions: Work through the calculations on the chart on the next page. What options could be pursued in order to improve final customer lifetime value that is what numbers could increase or decrease to increase the final value?
Related Book For
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
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