The approximate worth of a customer to a company in economic terms is known as _____.
A) net present value (NPV)
B) customer lifetime value (CLV)
C) customer present value (CPV)
D) customer future value (CFV)
E) customer value (CV)

Question

Quizplus · Accepted Answer

Customer lifetime value (CLV) is the approximate worth of a customer to a company in economic terms over the entire duration of their relationship. It takes into account the total revenue generated by the customer, as well as the costs associated with acquiring, servicing, and retaining them. CLV is an important metric for companies to measure, as it can inform decisions related to customer acquisition, retention, and loyalty programs.

The Approximate Worth of a Customer to a Company in Economic