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(low-volume, medium-volume, high-volume, etc.), but for now, we will lump them all together into a single lifetime value table (Table 5-6), so that we can understand the principles involved. We are assuming newly acquired customers in year 1 and examining their performance over the next 3 years. The retention rate is the percentage of customers that remain from year to year. As we can see, WardChem loses 30 percent of its newly acquired customers after the rst year. It does better in subsequent years, with the retention rate rising to 80 percent in the third year. Retained customers are those same customers in their rst, second, and third years with WardChem. New customers who arrive in year 2 or year 3 are not shown here. The year they arrive is their year 1. Let us assume that WardChem retains a base of about 45,000 customers. It does this by losing 9000 customers and gaining 9000 new ones every year. We are studying the history of the retained customers. The average order size tends to grow every year. This is typical of all corporations. The number of orders per year also tends to grow. The cost percent is a rough number that estimates the average Table 5-6 Lifetime Value for Wardchem

private void OnOneSecond(object source, EventArgs args) { if (Elapsed != null) { MyTCEventArgs mtcea = new MyTCEventArgs("Message from OnOneSecond"); Elapsed(source, mtcea); } } ... } class ClassA { public void TimerHandlerA(object source, MyTCEventArgs args) { Console.WriteLine("Class A Message: {0}", args.Message); } } // This code is given at the end of the chapter.

class Program { static void Main() { ClassA ca = new ClassA(); MyTimerClass mc = new MyTimerClass(); mc.Elapsed += // Register handler. new EventHandler<MyTCEventArgs> (ca.TimerHandlerA); Thread.Sleep(3250); } } This code produces the following output: Class A Message: Class A Message: Class A Message: Message from OnOneSecond Message from OnOneSecond Message from OnOneSecond

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Year 1 Retention rate Retained customers Average order Orders per year Total revenue Cost rate Variable costs Acquisition cost ($1,400) Retention costs ($90/yr) Total costs Gross pro t Discount rate Net present value of pro t Cumulative NPV of pro t Lifetime value 70% 45,000 $2,500 8 $900,000,000 75% $675,000,000 $ 63,000,000 $ 4,050,000 $742,050,000 $157,950,000 1.01 $155,779,959 $155,779,959 $3,462 Year 2 75% 31,500 $2,700 9 $765,450,000 71% $543,469,500 0 $ 2,835,000 $546,304,500 $219,145,500 1.09 $200,894,344 $356,674,303 $7,926 Year 3 80% 23,625 $2,900 10 $685,125,000 69% $472,736,250 0 $ 2,126,250 $474,862,500 $210,262,500 1.17 $179,159,636 $535,833,940 $11,907

when rendering a 3D scene to the screen. However, in some cases you may want to specify other viewing angles. These are usually cases where you are rendering the scene into a texture, for example, as seen by a light. In the case of a light, the larger viewing angle can mean a larger area being lit. For an example, see recipe 3-13.

You can use the IsDefined method of the Type object to determine whether a particular attribute is applied to a particular class. For example, the following code declares an attributed class called MyClass and also acts as its own attribute consumer by accessing an attribute declared and applied in the program itself. At the top of the code are declarations of the attribute ReviewComment and the class MyClass, to which it is applied. The code does the following: First, Main creates an object of the class. It then retrieves a reference to the Type object by using the GetType method, which it inherited from its base class, object. With the reference to the Type object, it can call the IsDefined method to find out whether attribute ReviewComment is applied to this class. The first parameter takes a Type object of the attribute you are checking for. The second parameter is of type bool and specifies whether to search the inheritance tree of MyClass to find the attribute.

percentage of the selling price of company products that goes for manufacturing, distribution, and other costs. The balance is pro t or marketing costs. The acquisition cost is computed by adding together all the expenses involved in acquiring new customers during a given year advertising on TV, radio, print, and direct mail; sales force salaries, commissions, and bonuses and dividing that total by the number of customers actually acquired during that year. The retention costs are those costs spent to keep customers happy and buying. This could include an annual retreat, customer communications, or customer services. The discount rate is used to compute the net present value of the pro ts received. Money that will arrive in 1 year or 2 years is obviously not as valuable today as money that arrives today. The discount rate is a number that puts all these amounts on the same basis so that they can be added together. As discussed in earlier chapters, the formula for the discount rate is D (1 i * rf )waiting time

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