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Calculate the CLV based on the following assumptions Discount rate 6% Acquisition cost $ 30 Retention costs $ 10 Retention rate 80% Average customer contribution
| Calculate the CLV based on the following assumptions | ||||
| Discount rate | 6% | |||
| Acquisition cost | $ 30 | |||
| Retention costs | $ 10 | |||
| Retention rate | 80% | |||
| Average customer contribution | $50 | |||
| INPUTS: CUSTOMER LIFETIME VALUE | ||||
| 1 | 2 | 3 | 4 | |
| Discount rate | 5.00% | |||
| Acquisition cost | $ 25.00 | |||
| Retention costs | $ 15.00 | $ 15.00 | $ 15.00 | |
| Retention rate | 90.00% | 90.00% | 90.00% | 90.00% |
| Average customer contribution | $ 100.00 | $ 100.00 | $ 100.00 | $ 100.00 |
| OUTPUTS | ||||
| Cumulative retention | 100.00% | 90.00% | 81.00% | 72.90% |
| Net contribution | $ 75.00 | $ 85.00 | $ 85.00 | $ 85.00 |
| Expected average contribution | $ 75.00 | $ 76.50 | $ 68.85 | $ 61.97 |
| Discount factor | 1.05 | |||
| Discount factor per period | 1 | 1.05 | 1.1025 | 1.157625 |
| $ 75.00 | $ 72.86 | $ 62.45 | $ 53.53 | |
| CLV | $263.83 | |||
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