amartino44
New member
- Joined
- Apr 6, 2015
- Messages
- 13
Hello. I'm calculating lifetime value of a customer and I'm trying to understand the math.
I have first year customers: 1000
Retention rate: 50%
All retention after first: 75% to infinity
THe formula is 1+.5/(1-.75)
Why does this work?
I have first year customers: 1000
Retention rate: 50%
All retention after first: 75% to infinity
THe formula is 1+.5/(1-.75)
Why does this work?