Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You run a health club and want to estimate the lifetime customer value of your clients. You estimate that your typical customer spends $37 per
You run a health club and want to estimate the lifetime customer value of your clients.
You estimate that your typical customer spends $37 per month, which is composed of membership fees, group classes and personal training. The average gross margin for these services is 57%. The retention rate for clients is estimated to be 54%. The health club uses a discount rate of 6% in evaluating investments.
What is the current Lifetime Customer Value for health club members?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started