Which metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company?
A) churn rate
B) CLTV
C) cost per lead
D) cost per sale

Question

Quizplus · Accepted Answer

CLTV (Customer Lifetime Value) is the metric that measures the relationship between the revenue generated by a customer, the expenses incurred in acquiring and serving that customer, and the expected duration of that relationship. CLTV determines the value a customer brings to a company over their lifetime and helps businesses make informed decisions on customer acquisition and retention strategies.

Which Metric Is Based on the Relationship Between the Revenue