A cable company spends on average S600 to acquire a customer. Annual maintenance costs per customer-$45; record-keeping and billing costs basic service package-$30 per month. Typically, 40 percent of customers buy a premium package-$50 per month; 10 percent buy the superpremium package- $80 per month. The average discount rate provided to each customer is 12%. Over time, 80 percent of customers remain with the company from one year to the next. $30 per customer per annum. Price of a - 1. What is the average CLV for all customers?

A cable company spends on average S600 to acquire a customer. Annual maintenance costs per customer-$45; record-keeping and billing costs basic service package-$30 per month. Typically, 40 percent of customers buy a premium package-$50 per month; 10 percent buy the superpremium package- $80 per month. The average discount rate provided to each customer is 12%. Over time, 80 percent of customers remain with the company from one year to the next. $30 per customer per annum. Price of a - 1. What is the average CLV for all customers?

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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