question archive For the information given, rank the customers in terms of customer lifetime value
Subject:ManagementPrice:3.87 Bought7
For the information given, rank the customers in terms of customer lifetime value.
Avg. Annual Sales Avg. Profit Margin Expected Lifetime
Customer 1: Customer 2: Customer 3:
$3,450 $2,000 $1,400
17 % 13% 32 %
8 years 6 years 10 years
Use a discount rate of 6 percent and treat the average sales figures as annuities. Should any of these customers be fired?
Purchased 7 times