The lifetime value of a customer is based on the idea that customers generate revenues over their lifetimes with a company that are greater than a single transaction.

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The statement is true. Lifetime value of a customer is the total worth of a customer to a business over the entire duration of their relationship, considering all potential transactions that the customer can have with the company. It takes into account repeat sales, referrals, and other potential revenue sources.

The Lifetime Value of a Customer Is Based on the Idea