What do lifetime-value-of-a-customer and payback calculations recognize?
A) that customers will always be there, regardless of the industry or product
B) that customer complaints have little relevance to how people actually behave
C) that long-term customers are usually more valuable than new ones
D) that customer satisfaction is not the determinant of how loyal the customer will be

Question

Quizplus · Accepted Answer

Lifetime-value-of-a-customer and payback calculations recognize that long-term customers are usually more valuable than new ones because they tend to buy more over time, can cost less to serve, and may generate additional business through referrals.

What Do Lifetime-Value-Of-A-Customer and Payback Calculations Recognize