What Is the Customer Lifetime Value of a Customer That

question 94

Multiple Choice

What is the customer lifetime value of a customer that that generates $5,000 (on average) of annual sales? Assume an 8% discount rate, a 15% profit margin, and a customer expected lifetime of 8 years.

• A) Less than $2,000
• B) Between $2,000 and $3,000
• C) Between $3,000 and $4,000
• D) More than $4,000

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