To determine customer lifetime value, a company needs to know all of the following EXCEPT which one?
A) customer average purchases per year
B) costs to service the customer
C) customer retention rate
D) the company's discount rate
E) customer perceived costs

Question

Quizplus · Accepted Answer

Customer perceived costs are not necessary to determine customer lifetime value. Instead, the company should focus on factors such as customer average purchases per year, costs to service the customer, customer retention rate, and the company's discount rate.

To Determine Customer Lifetime Value, a Company Needs to Know