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You are a niche fitness salon, and your membership is R479.99 per month. Your variable costs associated with your business are R57.23, apportioned per member
You are a niche fitness salon, and your membership is R479.99 per month. Your variable costs associated with your business are R57.23, apportioned per member per month. You spend approximately R97.55/year on marketing to each member. The attrition rate amongst members is about 0,9% per month. At a monthly discount rate of 1%, what is the CLV of a customer in your business? (Please round up or down your calculations, as appropriate, to the nearest cent.). Provide a short conclusion (a sentence of two) about this result.
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