Credit Sprint / Practice problems / Customer lifetime value
Customer lifetime value practice problems
Marketing Unit 2. Try each one, then open the worked solution. The Credit Sprint app generates unlimited new versions with fresh numbers.
A customer brings $50 in profit per year and stays for 5 years. It cost $120 to win the customer. What is the customer's net lifetime value in dollars?
Show solution
Lifetime profit = 50 × 5 = 250. Net value = 250 − 120 = 130.
A customer brings $150 in profit per year and stays for 4 years. It cost $120 to win the customer. What is the customer's net lifetime value in dollars?
Show solution
Lifetime profit = 150 × 4 = 600. Net value = 600 − 120 = 480.
A customer brings $80 in profit per year and stays for 8 years. It cost $40 to win the customer. What is the customer's net lifetime value in dollars?
Show solution
Lifetime profit = 80 × 8 = 640. Net value = 640 − 40 = 600.
A customer brings $150 in profit per year and stays for 4 years. It cost $60 to win the customer. What is the customer's net lifetime value in dollars?
Show solution
Lifetime profit = 150 × 4 = 600. Net value = 600 − 60 = 540.
A customer brings $150 in profit per year and stays for 4 years. It cost $60 to win the customer. What is the customer's net lifetime value in dollars?
Show solution
Lifetime profit = 150 × 4 = 600. Net value = 600 − 60 = 540.
A customer brings $120 in profit per year and stays for 10 years. It cost $100 to win the customer. What is the customer's net lifetime value in dollars?
Show solution
Lifetime profit = 120 × 10 = 1200. Net value = 1200 − 100 = 1100.