Which data analysis tool allows firms to monitor the actual costs of doing business with customers to ensure that it is focusing on the most profitable customers?
A)demographic value analysis
B)predictive modeling
C)recency-frequency-monetary analysis
D)lifetime value analysis
E)customer segmentation analysis

Question

Quizplus · Accepted Answer

Lifetime value analysis allows firms to monitor the actual costs of doing business with customers to ensure that it is focusing on the most profitable customers. It measures the total profit a customer will provide a company over the lifetime of their relationship.

Which Data Analysis Tool Allows Firms to Monitor the Actual