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A mobile company spends on average $300 to acquire a customer. The company retains 85% of customers from one year to the next. The discount
- A mobile company spends on average $300 to acquire a customer. The company retains 85% of customers from one year to the next. The discount rate is 9%. The cost to serve each customer is $75. Revenue is $125 per month.
- What is the annual profit margin? [profit margin = revenue cost to serve customer]
- What is the CLV for a customer? [(M * R) / (1 + D R) acquisition cost]
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Volatility Trading
Authors: Euan Sinclair
2nd Edition
1118347137, 9781118347133
