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What Is the Main Benefit Companies Attain by Accurately Calculating

Question 23

Multiple Choice

What is the main benefit companies attain by accurately calculating a customer's CLV?


A) The company can build a model of the customer's lifestyle,which allows them to predict how the customer will react to various sales approaches.
B) The company can save time by eliminating customers from their databases that are not expected to make many purchases in the future.
C) The company may realign human capital by sending certain salespeople to service accounts they have not previously met with but that have characteristics that the salesperson has experience with.
D) The company may back out of price wars with other vendors if the customer's CLV does not indicate that they will make enough money from that customer over the long term.
E) The company may sell the customer's demographic information to competitors or to companies in allied industries.

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