Which metric is based on the relationship between the revenue produced by a specific customer,the expenses incurred in acquiring and servicing that customer,and the expected life of the relationship between the customer and the company?
A)Churn rate
B)Customer lifetime value
C)Cost per lead
D)Cost per sale
E)Customer average value

Question

Quizplus · Accepted Answer

The metric described in the question is Customer lifetime value, which takes into account the revenue generated by a customer, the expenses of acquiring and servicing that customer, and their expected lifespan with the company. Churn rate measures the rate at which customers stop doing business with a company, Cost per lead measures the cost of generating a potential customer, Cost per sale calculates the cost of making a sale, and Customer Average Value calculates an average value of a customer over a specific period.

Which Metric Is Based on the Relationship Between the Revenue