Based on the following customer purchase data, which customer would have a higher lifetime value to the retailer?
A) Marcia
B) Jan
C) Cindy
D) Alice

Question

Based on the following customer purchase data, which customer would have a higher lifetime value to the retailer? 
A) Marcia 
B) Jan 
C) Cindy 
D) Alice

Quizplus · Accepted Answer

To estimate CLV, retailers use past behaviors to forecast future purchases. A customer who spends money each month would have a higher CLV than those who shop occasionally because of their recency and frequency levels. Both Marcia and Jan have high recency and frequency levels, however, Jan has the higher monetary level over Marcia.

Based on the Following Customer Purchase Data, Which Customer Would