Question
Assume that a customer shops at a local grocery store spending an average of $400 a week, resulting in a retailer profit of $25 each
Assume that a customer shops at a local grocery store spending an average of
$400
a week, resulting in a retailer profit of
$25
each week from this customer. Assuming the shopper visits the store all 52 weeks of the year, calculate the customer lifetime value if this shopper remains loyal over a 10-year life span. Also assume a
8 percent annual interest rate and no initial cost to acquire the coustmer
the customer yields $ per yearin orofit for this retailer
percent annual interest rate and no initial cost to acquire the customer.
The customer yields
$nothing
per year in profits for this retailer.
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