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.

Problem 1.

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.

Problem 2.

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.

Problem 3.

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.

Problem 4.

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.

Problem 5.

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.

Problem 6.

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.