Question
BioHealth sells a 30-tablet bottle of its turmeric capsules online for $23. Its profit margin per bottle is 69%. The marketing director has noted that
BioHealth sells a 30-tablet bottle of its turmeric capsules online for $23. Its profit margin per bottle is 69%. The marketing director has noted that the average first-time buyer places very few additional orders. In light of this, the company is considering offering a 16% discount to customers who subscribe to a 6-month automatic delivery plan, with monthly deliveries. It is expected that 46% of first-time buyers will sign up for the automatic delivery plan and the average customer will renew the delivery option multiple times resulting in an average of 2 years of monthly purchases. What is the expected CLV of the delivery plan per new customer?
Please show the work as I'm trying to learn the concept
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