George Washington University Customer Lifetime Value Worksheet

I’m working on a marketing question and need an explanation to help me understand better.

Using the Excel spreadsheet I provided, compute the customer lifetime value for the two branding strategies for 2004 (Year 1) to 2009 (Year 6); and don’t forget to include acquisition costs in 2003 (Year 0). Does your analysis suggest that changing to a corporate branding strategy will lead to an increase or a decrease in CLV? By how much? I won’t expect you to remember a precise value, but you should be able to tell me if the value you calculated falls within a given range.