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Can someone help me figure out how to fill in the blanks for this problem? Thank you! Calculate the CLV based on the following assumptions
Can someone help me figure out how to fill in the blanks for this problem?
Thank you!
Calculate the CLV based on the following assumptions Discount rate 6% Acquisition cost $ 30 Retention costs $ 10 Retention rate 80% Average customer contribution $50 DY INPUTS: CUSTOMER LIFETIME VALUE 1 2 3 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 $263.83Step by Step Solution
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