PLEASE EXPLAIN WITH FORMULAS, TRYING TO LEARN THE CONCEPTS. THANK YOU.
Homework Answers
Customer lifetime value (CLV) = (Annual profit generated by the customers * Average customer lifespan) - Cost to acquire customers (CAC - Customer acquisition cost)
CLV = ((70-33)*6 years) - 0
CLV = 222$
Note : Since Customer acquisition cost is missing in the question, we have assumed it to be Nil.
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