Tyche Inc., an electronics manufacturer, wants to assess future revenues and profit streams from each of its customers. It is focusing on the satisfaction and retention of its more profitable customers instead of spending its marketing efforts on attracting uninterested customers. Tyche is using _____ as a measure of effectiveness.

Question

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Customer Lifetime Value (CLV) is the measure of the total worth of a customer to a business over the entirety of their relationship. By assessing the potential revenues and profits from each customer, Tyche can prioritize its resources on retaining its more profitable customers instead of attracting new ones. CLV helps organizations to measure the effectiveness of their customer relationship management strategies.

Tyche Inc, an Electronics Manufacturer, Wants to Assess Future Revenues and and Profit