Which of the following best describes lifetime customer value?
A)It is the value a customer places on specific ways of satisfying a basic need.
B)It is the value companies place on an individual transaction with a customer.
C)It is the present value of a stream of revenue that can be produced by a customer over time.
D)It is the value a company places on selling the product to more than one customer.

Question

Quizplus · Accepted Answer

Lifetime customer value (LCV) is the present value of the potential stream of revenue that a customer will generate over their lifetime of doing business with a company. This takes into account their average order value, frequency of purchases, and length of time as a customer. Option A refers to customer perceived value, Option B is transactional value, and Option D is not a correct definition of LCV.

Which of the Following Best Describes Lifetime Customer Value