Figure 1.15: Customer Lifetime Value
| Period | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
|---|---|---|---|---|---|---|---|
| Cash Flow | |||||||
| Present Value of $1 (*) | 1.000 | 0.870 | 0.756 | 0.658 | 0.572 | 0.497 | 0.432 |
| Present Value (Cash Flow) | ($51) | $26.10 | $31.75 | $28.95 | $28.03 | $27.34 | $0 |
| Net Present Value | $91.17 | ||||||
| Customer Lifetime Value (Periods) | 4 | 5 | 6 | ||||
| Customer Retention | 75.0% | 80.0% | 83.3% | ||||
Instruction: Select a Customer Life of 4, 5 or 6 periods to see how customer lifetime value changes. You can also change any of the yellow input cells to see how customer lifetime value changes.