A customer's profitability is judged on the basis of the lifetime stream of revenue and cost, not the profit from a particular transaction.

Question

Quizplus · Accepted Answer

A customer's profitability is determined by the cumulative profits generated from all their transactions over the entire duration of their relationship with the company. This includes the revenue generated from repeat purchases and referrals, as well as the costs associated with servicing the customer over their lifetime.

A Customer's Profitability Is Judged on the Basis of the Lifetime