The concept of a customer's lifetime value is important to companies because:
A) It lets the company know how many products they have sold over time
B) It forces the company to invest money into things they don't need
C) It helps decide what customers need and what amount of resources allocated to them
D) All of the above

Question

Quizplus · Accepted Answer

Customer Lifetime Value helps the company allocate resources to customers effectively. It helps to identify the customers that bring in the most revenue and thus can help companies to understand what type of customers are needed.

The Concept of a Customer's Lifetime Value Is Important to Companies