Customer lifetime value is a type of analysis used to:
A)Assess the ethical practices of each salesperson-customer relationship.
B)Assess the current profit potential of a customer.
C)Assess the long term profit potential of a customer.
D)Assess the current profit potential of all the firm's customers.
E)Assess the long term profit potential of all the firm's customers.

Question

Quizplus · Accepted Answer

Customer lifetime value is a marketing analysis that evaluates the long-term profit potential of a customer. It takes into account factors such as the customer's repeat purchase behavior, their loyalty, and the cost of acquiring and retaining them. By understanding the customer lifetime value, companies can tailor their marketing efforts and customer service to focus on the customers who will generate the most long-term revenue for the company.

Customer Lifetime Value Is a Type of Analysis Used To