Suppose a company sells a subscription service.Customers typically remain customers for 3 years, and they pay $20.00 per month for the service, which means $240.00 ($20.00 × 12 months) per year or $720.00 ($240.00 × 3 years) potential revenue from the customer.This is an example of:

Question

Quizplus · Accepted Answer

Customer lifetime value (CLV) is the total revenue a business can expect from a single customer account throughout the business relationship, which in this case is $720 over 3 years.

Suppose a Company Sells a Subscription Service