The approximate worth of a customer to a company in economic terms is known as the _____.
A) net present value (NPV)
B) customer lifetime value (CLV)
C) customer present value (CPV)
D) customer future value (CFV)
E) total customer value (TCV)

Question

Quizplus · Accepted Answer

The approximate worth of a customer to a company in economic terms is known as the customer lifetime value (CLV). This metric considers the total amount a customer is expected to spend with the company over the duration of their relationship, minus the cost to acquire and serve that customer. It is a key metric in evaluating the profitability of a company's customer base and can inform strategic decisions around customer acquisition and retention.

The Approximate Worth of a Customer to a Company in Economic