MKT 300 Study Guide - Quiz Guide: Retention Rate, Customer Retention, Toronto Star

• School: Ryerson University
• Department: Marketing
• Course: MKT 300
• Professor: Hamed Mehrabi

Document Summary

If discount rate = 20% and the retention rate is 75% calculate the clv of a customer that generates the following revenues: year 1 year 2 . Year 3 year 4 years 5-7 . The cost to acquire the customer is . Assume the annual profit from a credit-card customer is year 1 , year 2 , year 3 , year 4 , year 5, , year 6 , year 7 . Each year there is a 100% chance of keeping the customer and the discount rate is 10%. 75% retention rate, a 10% required rate of return and the same customer profit in years 1 to 4. 75% retention rate, a 10% required rate of return and the same customer profit in years 1 to 7. 50% retention rate, a 50% required rate of return and the same customer profit in years 1 to 4.