ISCOM 424 Week 4 Individual Assignment Customer Lifetime Value Metric
This document of ISCOM 424 Week 4 Individual Assignment Customer Lifetime Value Metric includes:
Use the course materials supplement Customer Lifetime Value Metric, found on your student Web page, to calculate the lifetime value of a customer who has recently contracted with Riordan Manufacturing.
Customer Lifetime Value Metric
Read the scenario below, then use the table to calculate customer lifetime value.
Scenario Bilberry Beverages, Inc. is a newly acquired Riordan Manufacturing customer. Bilberry offers four flavors of berry soda. Each flavor requires its own bottle. Bilberry needs six pallets per month for each flavor. Pallets hold 700 bottles. Each bottle costs Riordan 180 to produce and label. Bilberry' pays 38c per bottle, including shipping. Riordan absorbs the shipping cost, which is S12 per pallet.
The average contractor remains a loyal customer of Riordan Manufacturing for 7 years and losses account for only 4% of total sales over the average lifetime of these relationships.
Using these averages, and the figures provided in the scenario, calculate customer lifetime value for Riordan's relationship with Bilberry Beverages, Inc.