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CMA Final · Strategic Financial Management · Digital Finance

A Bengaluru neobank spends ₹6,00,000 on a digital campaign that acquires 2,000 customers. Each customer generates a contribution of ₹450 per year and the average customer stays for 4 years. Ignoring discounting, what is the customer lifetime value net of acquisition cost per customer?

The net lifetime value per customer is ₹1,500. Lifetime contribution is ₹450 for 4 years, ₹1,800, and acquisition cost per customer is ₹6,00,000 divided by 2,000, or ₹300; subtracting gives ₹1,500.

  1. A₹1,500Correct
  2. B₹1,800
  3. C₹300
  4. D₹450

Explanation

Acquisition cost per customer = 6,00,000 / 2,000 = ₹300. Lifetime contribution = 450 × 4 = ₹1,800. Net = 1,800 − 300 = ₹1,500. Option B ignores the acquisition cost.

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