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What is Lifetime Value to Customer Acquisition Cost ratio of EarlyTech Company given the following estimates? Customers are expected to pay for an annual subscription
What is Lifetime Value to Customer Acquisition Cost ratio of EarlyTech Company given the following estimates? Customers are expected to pay for an annual subscription of $240 at the beginning of the year for a maximum of 3 years Each year, 20% of the remaining customers will not renew their subscription To determine lifetime value, use a discount rate of 15% The company attains customers through Google Ads for which it pays $0.30 a click It takes about 1000 clicks to get 2 customers
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