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Forecast the customer lifetime value

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Reference no: EM131796513

You are putting together the marketing plan for Pain Be Gone.

Forecast the customer lifetime value.

Assume:

Patients will pay $1,000 per year for treatment
Contribution margin is 50%
Patient retention rate will be 75% each year
The discount rate is 10%
Use the margin multiplier method.

First, identify the margin $ .

Next, identify the multiplier .

Finally, the CLV is .

 

Reference no: EM131796513

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