Question
Customer attraction cost of $25 whose purchases are tracked over a 4-year period. The average annual purchase was $500, with a gross margin of 60%
Customer attraction cost of $25 whose purchases are tracked over a 4-year period. The average annual purchase was $500, with a gross margin of 60% and an annual per capita marketing expense of $50. A discount rate of 8% is used, and the observed annual retention rate was 50%.
What is the 4-year CLV?
Step by Step Solution
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Step: 1
To calculate the customer lifetime value CLV we need to use the following formula CLV Average annual ...
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Advanced Accounting
Authors: Gail Fayerman
1st Canadian Edition
9781118774113, 1118774116, 111803791X, 978-1118037911
