I have a mathematics problem that I am unable to solve. If anyone could help, that would be much appreciated.
A company runs an online business and needs to know its average customer lifespan value. To do that, they only have the following data available:
Number of total customers (per month): 2749 5047 8306 12564 16466 21378 25034 28390 31691 34899 38931 42517 45645 48869 52352 56827 60522 64454 68336 73336 77833 81649 85801 90574 96239 101498 105981 111808 117344 123585 131654
Revenues earned from the total number of customers (per month): 13356 29616 43931 53445 58478 91563 89380 115265 131309 131925 141776 144345 169648 168264 189184 170139 169235 197828 210308 222409 229694 261233 244681 299408 303339 295173 323754 304038 312711 324436 345881
The question is: calculate the customer lifespan then the average customer lifespan value?
I don't have any idea how to that with such a few data... Any help would be highly appreciated.
Many thanks
You have no data that bear on the customer lifespan. It could be that every customer comes once and departs, so next month you have a completely new population. It could be that customers never leave, just that new ones are added every month. A quick glance did not show any months where the number of customers decreases, but there may be some. You can certainly get the average purchase by a customer in each month, but that doesn't tell you anything about whether you have any repeat customers. It is not that you have few data, it is that you do not have the right data.