The net present value of a customer is:
A)a measure of how customers assess the benefits of a product in making purchase decisions.
B)a measure of the likelihood that satisfied customers will recommend the product to other customers.
C)the total profits (revenues associated with a customer minus the expenses needed to serve a customer) discounted over time.
D)the total value of the benefits offered by a customer in a customer-supplier partnership.

Question

Quizplus · Accepted Answer

The net present value of a customer is the total profits (revenues associated with a customer minus the expenses needed to serve a customer) discounted over time. It takes into account the value a customer brings to the business over their lifetime, and helps companies make decisions about where to allocate resources to attract and retain customers.

The Net Present Value of a Customer Is