Calculate the customers lifetime value


Assignment task: You do some research to better understand the cannabis market and learn that the average consumer spends $645 on cannabis per year. Cannabis dispensaries generally have a net profit margin of 15% and marketing/retention costs of approximately 5% of sales revenue. Dispensaries have a 40% customer retention rate.1 (a) Calculate the customer's lifetime value. Assume a lifetime of 3 years and a discount rate of 10%. Show all your work. (b) What is the maximum amount your client can spend on acquisition costs (per customer) if they want to have at least $75 profit per customer? Show your work.

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Marketing Management: Calculate the customers lifetime value
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