When companies recognize the potential sales, profits and endorsements that come from a repeat customer who stays loyal to the company, they are focused on the _______ value of a customer.

Question

Quizplus · Accepted Answer

The term "lifetime value" refers to the total amount of money a customer is expected to spend on a company's products or services over the duration of their relationship. This includes repeat purchases, as well as any additional services or upgrades they may opt for. Companies that focus on increasing their customers' lifetime value are investing in their long-term success by cultivating and maintaining strong relationships with their customer base.

When Companies Recognize the Potential Sales, Profits and Endorsements That