When you talk to business people, they can tell you what an average customer spends on their products in an average month and in an average year. They can also tell you how long they keep an average customer. Using these two numbers, they can compute the lifetime value of an average customer. For example, if their average customer spends $20 per month with them and they keep their customers an average of 10 years, an average customer has a lifetime value of $2,400 ($20 per month x 12 months x 10 years = $2,400). 

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