The net margin of customer transactions, less any cost attributable to maintaining a particular customer and discounted appropriately over time to current value is the
A) Operational profit of a firm
B) Monetary value of a customer
C) Opportunity cost of a firm
D) Transaction cost of a customer
E) Net worth of the firm

Question

Quizplus · Accepted Answer

The net margin of customer transactions, less any cost attributable to maintaining a particular customer and discounted appropriately over time to current value, defines the monetary value of a customer. This concept is used in customer relationship management and marketing to assess the financial value each customer brings to the business over time.

The Net Margin of Customer Transactions, Less Any Cost Attributable