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Mathematics, 02.10.2019 03:00 lukeperry

Sprint is curious as to how much value each customer provides to the firm. management has estimated that it currently costs $10 on average to acquire and attract a new customer. most customers sign up for the $79.99/month phone plan with a margin of $61.99. past audits of the firm's data suggest that most customers remain with sprint for 7 years. a. what is the clv? b. what if the salesperson upsells new customers to the premier plan of $99.99 per month with a cost of $22/month to the firm? what happens to clv if customer satisfaction decreases and retention drops to 2 years (the required time of the sales contract)? by how much does clv change? c.

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