Which of the following statements is true of customer lifetime value?
A) Salespeople lay more emphasis on a single sale rather than the combined value of future sales.
B) Customer lifetime value is only measured for transactions involving a solo exchange.
C) There is no way to estimate the sum of future sales.
D) Customer lifetime value is a statement explaining how a salesperson's products will effectively solve the buyer's business issue.
E) Customer lifetime value is expressed in terms of the combined total of all future sales discounted back into current dollars.

Question

Quizplus · Accepted Answer

Customer lifetime value is expressed in terms of the combined total of all future sales discounted back into current dollars. This helps businesses understand the long-term value of acquiring and retaining customers, rather than just focusing on a single transaction. A is incorrect because salespeople should prioritize building long-term relationships with customers rather than just focusing on one sale. B is incorrect because customer lifetime value is measured by multiple transactions over time. C is incorrect because businesses can use various methods to estimate future sales and calculate customer lifetime value. D is incorrect because customer lifetime value is not about solving the buyer's business issue specifically, but rather understanding the overall value a customer brings to a business over time.

Which of the Following Statements Is True of Customer Lifetime