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Let s assume that the cost of all these additional relationship-building activities is about $110 per customer per year, or about $5 million. There could be two results: The retention rate might go up by 5 percent, and the number of orders might go up by one-half order per year. Table 5-8 shows what could happen. Lifetime value in the third year has gone up from $11,907 to $13,362. What does that mean for WardChem in terms of pro ts As Table 5-9 shows, it means more than $65 million more pro ts after taking into account the extra $5 million per year spent on relationshipbuilding activities. Table 5-8 Revised Lifetime Value
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The identifier is the name by which your field or variable will be known The naming convention for arrays is the same as for other kinds of field or local variable The new keyword specifies that you are initializing the array You can omit new if you are using the array initializer feature, described later in this section Arrays have a fixed capacity that must be defined when the array is initialized This means that you have to decide the capacity you want to allocate to the array prior to its use and specify that capacity between the open and close square brackets, as shown in Figure 13-1 The capacity is specified using one of the C# integer types, such as int or long You can find more information on C# integers in 5 The statement in Figure 13-1 creates an array with a capacity of five objects.
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Arrays are like a row of slots; each of which can hold a reference or value of the type you have specified for the array The number of slots is the capacity you have assigned to your array This is illustrated by Figure 13-2, which shows an array with a capacity for four items..
5.0 6.0
When you initialize an array, it is populated with the default value for the array type. This is zero for numeric types, false for bool, and null for reference types. The array created in Listing 13-3 has five slots, each of which will be initialized with null since string is a reference type.
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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 ($200/yr) Total costs Gross pro t Discount rate Net present value of pro t Cumulative NPV of pro t Lifetime value 75% 45,000 $2,500 8.5 $956,250,000 75% $717,187,500 $ 63,000,000 $ 9,000,000 $789,187,500 $167,062,500 1.01 $164,767,265 $164,767,265 $3,661 Year 2 80% 33,750 $2,700 9.5 $865,687,500 71% $614,638,125 0 $ 6,750,000 $621,388,125 $244,299,375 1.09 $223,953,322 $388,720,586 $8,638 Year 3 85% 27,000 $2,900 10.5 $822,150,000 69% $567,283,500 0 $ 5,400,000 $572,683,500 $249,466,500 1.17 $212,564,425 $601,285,011 $13,362
Tip The .NET Framework Library contains classes that you can use to gather together items without having to allocate capacity in advance. See 19 for more details.
You will notice that the array type in Listing 13-3 is repeated on the left and right sides of the statement. In Listing 13-3, both of these types are string, meaning that I have created a local variable that is a string array and assigned it a reference that is also a string array. However, you can vary the types so that you assign an array of a derived type to a variable or field that is an array of a base type. Listing 13-4 contains a simple example. Listing 13-4. Initializing Arrays
object[] nameArray = new string[5];
6 8 2
The statement in Listing 13-4 has assigned a string array with a capacity for five objects to a variable called nameArray, which has been defined as an array of objects. This is an example of upcasting, which is explained in 6.
New LTV Old LTV Difference Times 45,000 customers Year 1 $3,661 $3,462 $200 $8,987,305 Year 2 $8,638 $7,926 $712 $32,046,283 Year 3 $13,362 $11,907 $1,454 $65,451,072
Each value in an array is given a position index, starting at zero and counting upward. You can see the sequence of indices in Figure 13-1. You access the value at a given index by using the array notation. For example, if I want to get the value at the first index of an array, I use the following statement:
string str = nameArray[0];
If I want to get the value in the third element, I use the following statement:
string str = nameArray[2];
Lifetime value charts like these are used in calculating the value of a name. They are very powerful predictors of success in database marketing.
34 38 4
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