Assignment 3: Customer Group

10 Marks

Calculate year-wise & final LTV at end of year 6 of Case on

next slide

Assume NPV @ 15% discount p.a.

Formula for calculating NPV is:

Total profit/(1+Discount rate)^n; where n is year for which
calculated

Formulae
Some already given in respective cells
Some to be placed in respective cells upto year 6

Use following template

CRM: Sanjiv Mathur

Assignment 3: Customer Group 10

Marks

List 10 Observations/ Suggestions to improve LTV/ Biz performance:

1)
2)
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11)
CRM: Sanjiv Mathur
12)

Assignment 3: LTV Customer Group 10

Marks

Example of Bank to compute LTV for group of

customers
In year 0, Bank spent Rs.10 million in campaigns
to generate new customers. Result was 100,000
new customers added at acquisition cost of Rs.
100/- per customer
Retention rates and profit per customer in
subsequent years as in template
Calculate LTV upto year 6
Also list 10 observations/ suggestions to improve
LTV and business performance

CRM: Sanjiv Mathur