Access over 20 million homework & study documents

Customer Value

Content type
User Generated
Subject
Marketing
Type
Homework
Rating
Showing Page:
1/1
Customer Lifetime Value
The value plot covers 8 years, each year netting a constant revenue of $40,000. Additionally, the
retention probability grows from 0.5 to 0.9 within the 8 years. The customer value is determined by
multiplying the revenue generated by the respective retention probability. The table below shows the
analysis.
Revenue
Probability
Value
40000
0.50
20000
40000
0.56
22285.71
40000
0.61
24571.43
40000
0.67
26857.14
40000
0.73
29142.86
40000
0.79
31428.57
40000
0.84
33714.29
40000
0.90
36000
Total
224000
The value growth chart is as shown below.
0
5000
10000
15000
20000
25000
30000
35000
40000
0 1 2 3 4 5 6 7 8 9
Value

Sign up to view the full document!

lock_open Sign Up
Unformatted Attachment Preview
Customer Lifetime Value The value plot covers 8 years, each year netting a constant revenue of $40,000. Additionally, the retention probability grows from 0.5 to 0.9 within the 8 years. The customer value is determined by multiplying the revenue generated by the respective retention probability. The ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Really useful study material!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4