Scenario1 Scenario2

month year month

Revenue 19.95 Revenue 19.95
Variable Cost 1.5 Variable Co 1.5
$M GM => 18.45 GM => 18.45

$R Marketing Spend (Retention Spend) 0.5 6 Marketing 0.25

d Discount Rate 1% Discount R 1%
Attrition 0.50% Attrition 1.00%
r Retention Rate 99.50% Retention 99.00%

($M - $R ) * ( 1+d / 1+d-r) ($M - $R ) * ( 1+d / 1+d-r)

$M - $R 17.95 $M - $R 18.2
1+d 101% 1+d 101%
1+d-r 1.500% 1+d-r 2.000%

CLV 1208.633 CLV 919.1

 year

1+d / 1+d-r)