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Calculating Customer LTV
Calculating Customer LTV
Calculating Customer LTV
Total $25,400
Cost savings benefits are the benefits derived from the use of AnswerDash are the advantages
of using the service due to its ability to reduce costs for the organization. The cost benefit value
of AnswerDash to its users is the amount of cost that the service is able to save as compared to
when it was not being used for customer service.
Revenue lifting benefits are the benefits that accrue to an organization as a result of use of
increase in revenue due to use of a technology that did not exist before. The revenues that are
being accrued to the organization now is subtracted to the revenues that were being accrued
previously by the business.
Customer LTV is important for a company to be able to plan and increase its profits to desirable
levels. The customer lifetime value is also important to overcome the overall e-commerce
success. The following is the formula for calculating customer lifelong.
Where:
Therefore:
T=1,000,000
AOV=2,100
ALV=36 months
AGM=80%