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Average order size for customers in families with young children is about $274. These customers place 1.2 orders per year, and they typically order merchandise
Average order size for customers in families with young children is about $274. These customers place 1.2 orders per year, and they typically order merchandise which generates a 53% contribution margin as percent of revenue.Golf Guide budgets $53 per year each for communications with this kind of customer.Annual retention rate for these customers is 83%.Customer acquisition cost for these customers is $87 per customer.Assuming a corporate discount rate of 14%, what is the customer lifetime value for one of these customers at Golf Guide?
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