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2 , 0 0 0 new customers were attracted at a cost of $ 2 0 each and then tracked over a 3 - year
2 , 0 0 0 new customers were attracted at a cost of $ 2 0 each and then tracked over a 3 - year period ( = 3 ) . The average annual purchase was $ 1 0 0 0 . 0 0 , with a gross margin of 5 0 % and annual per capita marketing expense of $ 1 0 0 . 0 0 . All - Star uses a discount rate of 1 0 % , and the retention rate was 4 0 % . What is All - Star's 3 - year CLV for the Birthday Club
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