A firm that uses data to compare the costs of retaining customers and the costs of acquiring new customers with the goal of determining how much money each type of customer requires is using
A)demographic value analysis.
B)lifetime value analysis.
C)customer segmentation analysis.
D)predictive modeling.
E)recency-frequency-monetary analysis.

Question

Quizplus · Accepted Answer

The approach described in the question is an example of Lifetime Value Analysis, which involves determining the long-term value of different types of customers based on factors such as acquisition costs, retention costs, and revenue generated over time. By comparing the costs of retaining existing customers with the costs of acquiring new customers, firms can determine which group is more valuable and allocate resources accordingly.

A Firm That Uses Data to Compare the Costs of Retaining