The _____ of a customer is the increased value or profit that accrues for each additional customer who remains loyal to a company rather than defecting to the competition.
A) Lifetime value
B) Attractiveness index
C) Profit performance quotient
D) Relationship benefit
E) Loyalty factor

Question

Quizplus · Accepted Answer

The concept described fits the definition of lifetime value, which refers to the total and net projected profits for a customer over their entire patronage with a company. Option B (attractiveness index) refers to a metric evaluating an industry's growth potential and relative risk while option C (profit performance quotient) refers to a financial analysis tool used to assess a company's profitability. Option D (relationship benefit) and option E (loyalty factor) are not widely recognized business terms.

The _____ of a Customer Is the Increased Value or Profit