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Calculate the clv using the simple formula

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Reference no: EM133046352

  1. Please calculate the CLV using the simple formula based on the following information: (Please show your calculations)
    1. Initial cost of acquisition=$350
    2. Annual profit contribution per customer =$750
    3. Customer retention rate=69%
  2. Please calculate the missing values in the underlined cells. 

initial cost  of acquisition

year 1

year 2

year 3

year 4

annual 

customer

revenue

475

450

600

600

1000

customer 

costs

 

200

325

325

475

average

profit

 

_____

______

______

______

customer

retention

rate

 

100%

58%

68%

70%

cumulative

retention

rate

 

 

_____

______

______

likely 

customer

profit

 

 

_____

______

______

discount

rate

1.0

1.08

______

_______

_______

CLV per

year

 

______

______

_______

_____

cumulative 

CLV

 

______

_____

_____

_____

 

Reference no: EM133046352

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