Question
Members of Goodlife Gym pay on average $32 once per month in the gym. Variable cost such as towels, soap and shampoo, and disinfectant associated
Members of Goodlife Gym pay on average $32 once per month in the gym. Variable cost such as towels, soap and shampoo, and disinfectant associated with each customer is $7 per month.
a) GoodLifes retention rate is 93% per year. What is the CLTV of a Goodlifes costumer if an annual rate of interest is 8%? Use the Traditional formula)
b) Find CLTV if a customer is expected to stay for 3 years. Use the Easy method.
c) Find the CLTV using the Simple formula if the retention rate is 93 %.
d) Find the CLTV using the DCF method over 3 years, at 12.25 % compounded semiannually.
e) Goodlife is planning to organize a dinner theatre for its customers, where it will spend $ 595 per customer; based on the CLTV computed using the four methods, what would you advise?
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Fraud examination
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
4th edition
538470844, 978-0538470841
