A company spends $120 to acquire each customer. It also need…
A company spends $120 to acquire each customer. It also needs to spend $5 per customer as incentives each month for all its customers to retain them. Still, the customer is likely to stay with the company and use its services only for a year, which costs the company $10 a month. What is the customer lifetime value if they pay $30 per month for the service?