________ describes the net present value of the stream of future profits expected over the customer's lifetime purchases.
A) Activity-based costing
B) Customer lifetime value
C) Customer value analysis
D) Customer-perceived value
E) Customer profitability analysis

Question

Quizplus · Accepted Answer

Customer lifetime value (CLV) is a metric that describes the net present value of the stream of future profits expected over the customer's lifetime purchases. It is a way for businesses to estimate the total economic value that a customer brings to the company over time. CLV takes into account the costs associated with acquiring, serving, and retaining the customer, and is used to guide decisions about pricing, marketing, and customer service.

________ Describes the Net Present Value of the Stream of Future