Question
Based on the following data Calculate the Customer Lifetime value (CLV) per customer? A phone company charges $49.95 per month. Variable costs for the account
Based on the following data Calculate the Customer Lifetime value (CLV) per customer?
A phone company charges $49.95 per month. Variable costs for the account are $4.50 per month. The marketing spend is $9.00 per year; its attrition rate is 0.5% per month. At a monthly discount rate (simple interest) of 1%, what is the CLV (using the formula)?
Step by Step Solution
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Step: 1
The Customer Lifetime Value CLV formula can be calculated using the following formula CL...
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Step: 2
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
