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The CEO asks the chief marketing officer to compute customer lifetime value (CLV) for catalog customers and online customers. The following information pertains to the company's operations in the online channel: Online Customers - 102,500 new online customers were acquired in a year - Average customer retention rate is 63% - Average length of the online customer relationship is five years - Average online customer spends $54 per purchase - Average online customer buys from the online store three times a year Cost of sales is 52% Q7. What is Customer Lifetime Value for online customers? You will need to construct urs analysis in space below following the Starbucks example we used in class, which is the formula for CLV- Duration of relationship. This problem must be computed using MS Excel. (5 . Q7 Customer Lifetime Value

The CEO asks the chief marketing officer to compute customer lifetime value (CLV) for catalog customers and online customers. The following information pertains to the company's operations in the online channel: Online Customers - 102,500 new online customers were acquired in a year - Average customer retention rate is 63% - Average length of the online customer relationship is five years - Average online customer spends $54 per purchase - Average online customer buys from the online store three times a year Cost of sales is 52% Q7. What is Customer Lifetime Value for online customers? You will need to construct urs analysis in space below following the Starbucks example we used in class, which is the formula for CLV- Duration of relationship. This problem must be computed using MS Excel. (5 . Q7 Customer Lifetime Value

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The CEO asks the chief marketing officer to compute customer lifetime value (CLV) for catalog customers and online customers. The following information pertains to the company's operations in the online channel: Online Customers 102,500 new online customers were acquired in a year - Average customer retention rate is 63% - Average length of the online customer relationship is five years - Average online customer spends $54 per purchase - Average online customer buys from the online store three times a year - Cost of sales is 52% Q7. What is Customer Lifetime Value for online customers? You will need to construct ure analysis in space below following the Starbucks example we used in class, which is the formula for CLV- Duration of relationship. This problem must be computed using MS Excel. (5 - Q7 Customer Lifetime Value
Transcribed Image Text:The CEO asks the chief marketing officer to compute customer lifetime value (CLV) for catalog customers and online customers. The following information pertains to the company's operations in the online channel: Online Customers 102,500 new online customers were acquired in a year - Average customer retention rate is 63% - Average length of the online customer relationship is five years - Average online customer spends $54 per purchase - Average online customer buys from the online store three times a year - Cost of sales is 52% Q7. What is Customer Lifetime Value for online customers? You will need to construct ure analysis in space below following the Starbucks example we used in class, which is the formula for CLV- Duration of relationship. This problem must be computed using MS Excel. (5 - Q7 Customer Lifetime Value
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