I very well could be overthinking this one. But I truly am struggling with the question. I feel like I can’t answer it without more information.
this is the direction I am going so far
Monthly Cost = $130 x 12 months + $1560
Previous Years = 15 so $1560 x 15 = $23,400
Future Years = 35 so $1560 x 35 = $54,600
this would give a total cost of $78,000
Can you help me with this question please
Written Assignment One-Pager: Customer Lifetime Value Worksheet
Let’s look at the ‘Customer Lifetime Value’ marketing concept. We’ll use the following hypothetical scenario to calculate the total expenditure for auto insurance. Try not to overthink here, just calculate the numbers… monthly cost times number of months times total number of years (previous & future):
- Monthly cost = $130
- Number of previous years = 15
- Number of future years = 35
I need to provide (approximately 75-100 words) based on the following two questions:
- What would the total Customer Lifetime Value using these calculations? (show your worksheet)
- Why should all of a firm’s departments understand the impact of this strategy?