Which of the following statements is true of customer lifetime value?
A) Salespeople lay more emphasis on a single sale, rather than the combined value of future sales.
B) Customer lifetime value is only measured for transactions involving a solo exchange.
C) There is no way to estimate the sum of the future sales.
D) The customer lifetime value is a statement explaining how the salesperson's products will effectively solve the buyer's business issue.
E) Customer lifetime value is expressed in terms of the combined total of all future sales discounted back into current dollars.

Question

Quizplus · Accepted Answer

Customer lifetime value is expressed in terms of the combined total of all future sales discounted back into current dollars. This helps organizations understand the long-term value of their customer base and make decisions about how to allocate resources and build customer relationships. Option A is incorrect because salespeople should prioritize building long-term customer relationships over short-term sales. Option B is incorrect because customer lifetime value can be measured for multiple transactions with the same customer. Option C is incorrect because there are several ways to estimate future sales, such as analyzing past purchase behavior and customer demographics. Option D is incorrect because customer lifetime value is not about the effectiveness of the product in solving the buyer's business issue, but rather about the potential revenue generated by the customer over time.

Which of the Following Statements Is True of Customer Lifetime