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Find the Cumulative CLV Year 1 Year 2 Year 3 Cost of solicitation 1000 Response rate 5% Avg. Number of purchases per year 10 10
Find the Cumulative CLV
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| Year 1 | Year 2 | Year 3 |
| Cost of solicitation | 1000 |
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| Response rate | 5% |
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| Avg. Number of purchases per year |
| 10 | 10 | 12 |
| Avg. purchase/order size (per order) |
| 1000 | 700 | 500 |
| Margin |
| 50% | 50% | 50% |
| Ongoing Marketing costs |
| $500 | $300 | $250 |
| Retention rate (r) |
| 70% | 70% | 70% |
| Time: Discount rate (d) |
| 10% | 10% | 10% |
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