Customer equity refers to ________.
A) a firm's current sales
B) the share a firm earns of a customer's purchasing in their product categories
C) the amount a customer is spending each year on certain products
D) the total combined customer lifetime value of all of the company's current and potential customers
E) a firm's market share

Question

Quizplus · Accepted Answer

Customer equity refers to the total combined customer lifetime value of all of the company's current and potential customers. It takes into account the value of current customers as well as the potential value of future customers. Customer equity is an important metric for measuring the long-term value of a company's customer base and for making strategic decisions about marketing, sales, and customer service. It is calculated by multiplying the average customer lifetime value by the number of current and potential customers.

Customer Equity Refers to ________