Key Metrics for New-Age Businesses Assessment
Module 7 • 10 Questions
Question 1 of 10
0 of 10 answered
Zomato launches food delivery services in a new tier-2 city. They spend $120,000.00 on online referral marketing and acquire exactly 4,000 active new transacting users. The average acquired user places 8 orders per year. The Average Order Value (AOV) is $15.00. Zomato's commission take rate on orders is 25.0%. Assuming an average customer retention life of exactly 3 years (retention rate drops to zero after year 3), what is the Customer Acquisition Cost (CAC) per user, the Customer Lifetime Value (LTV) per user, and the resulting LTV:CAC multiple?
A
CAC: $30.00; LTV: $90.00; LTV:CAC = 3.0
B
CAC: $30.00; LTV: $120.00; LTV:CAC = 4.0
C
CAC: $40.00; LTV: $90.00; LTV:CAC = 2.25
D
CAC: $25.00; LTV: $75.00; LTV:CAC = 3.0