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Northern Aero Data (Clv) Case Analysis

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Question 1 1) The lifetime value of a typical customer in each segment when the discount rate is 15%. * Exhibit 1 shows that the customer lifetime value for each segment with a 15% discount rate. * The lifetime value of a typical customer in the platinum( top 20%) segment is worth $3496. * The lifetime value of a typical customer in the platinum( low 80%) segment is worth $2394. * The lifetime value of a typical customer in the gold ( top 20%) segment is worth $1415. * The lifetime value of a typical customer in the gold ( low 80%) segment is worth $769. * The lifetime value of a typical customer in the Silver( top 20%) segment is worth $406. * The lifetime value of a typical customer in the Sliver( low 80%) segment is worth $153. * The lifetime value of a typical customer in the inactive customers segment is worth $40. * The lifetime value of a typical customer in the low customers segment is worth $0. * * If the existing customers were to be economically valued, as an asset of the company, how much would they be worth? * The economic value of the existing customers can be calculated by multiplying the customer lifetime value of each segment by the segment’s size and then summing the value of all segments. * Total value, in today’s dollars, of the existing customer database will be $15,024,938. ( Shown in the Exhibit 2) * * Question 2 1) The lifetime value of a typical customer in each segment when the discount rate is 40%. * Exhibit 3 shows that the customer lifetime value for each segment with a 40% discount rate. * The lifetime value of a typical customer in the platinum( top 20%) segment is worth $2467. * The lifetime value of a typical customer in the platinum( low 80%) segment is worth $1653. * The lifetime value of a typical customer in the gold…...

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