Lifetime value calculations involve matching the costs of acquiring and maintaining customer relationships with the profit produced by those customers over the length of time they can be expected to do business with the company.

Question

Quizplus · Accepted Answer

Lifetime value calculations are designed to assess the profitability of customer relationships by comparing the costs of acquisition and maintenance with the revenue generated over the duration of their business with the company.

Lifetime Value Calculations Involve Matching the Costs of Acquiring and Maintaining