Customer lifetime value (CLV)is an important number in that it represents ___________.
A)What a customer spends in a year
B)An upper limit on spending to acquire a new customer
C)The importance of government contracts that have less risk
D)The loss one could expect from a new competitor
E)The discount rate of a given customer

Question

Quizplus · Accepted Answer

Overall, CLV is an important concept in that it encourages firms to shift their focus from quarterly profits to the long-term health of their customer relationships. CLV is an important number because it represents an upper limit on spending to acquire new customers.

Customer Lifetime Value (CLV)is an Important Number in That It