Which of the following represents the overall approximate worth of a customer to a company in economic terms?
A) net present value (NPV)
B) customer lifetime value (CLV)
C) customer present value (CPV)
D) customer future value (CFV)

Question

Quizplus · Accepted Answer

Customer lifetime value (CLV) represents the overall approximate worth of a customer to a company in economic terms. This metric calculates the total revenue a customer is expected to generate for a company during the entire duration of their relationship. It takes into account the customer's purchase history, duration of the relationship, and the likelihood of future purchases. CLV is an important metric for companies to help them make decisions related to customer acquisition, retention, and loyalty programs. A and C are not commonly used metrics in this context, and D is not a standard industry term.

Which of the Following Represents the Overall Approximate Worth of a Customer