Lifetime Value

Stage 1 (2020) “Lifetime Value”


The objective of this case is to create a lifetime value (LTV) calculation model for Smartpoint Inc. (SPI), a Software-as-a-Service business, in order to help them understand the lifetime value of a customer. The model will be heavily used by the management of the company to see how different changes to pricing, development strategy, etc. will impact the LTV and, therefore, dictate their marketing strategy.

This is an actual case from the Financial Modeling World Cup 2020, Stage 1 (Sep 18-21) competition. The downloadable file consists of the following:
Task: Excel file with given case assumptions; PDF file with Case Materials; PDF file with Questions.
Solution: 2 Excel files with full Solution Models; PDF file with correct Answers in Bold.

This model awarded 350 points, while the whole 2h Stage allowed to earn 1,000 points in total.

For your questions/suggestions/consideration please reach out to the Organizing Committee of the Financial Modeling World Cup at