Customer lifetime value is affected by revenue and by the costs of customer acquisition, retention, and cross-selling.

Question

Quizplus · Accepted Answer

Customer lifetime value (CLV) is the total value a customer brings to a business over the entire duration of their relationship. It is influenced by the revenue generated by that customer as well as the costs associated with acquiring, retaining, and cross-selling to them. Therefore, both revenue and costs impact CLV.

Customer Lifetime Value Is Affected by Revenue and by the Costs