Calculating a customer's _____ entails estimating their future purchases based on past purchases, adding in the value of referrals, and subtracting the cost of maintaining the relationship.
A) loyalty rate
B) lifetime value (LTV)
C) retention rate
D) acquisition cost
E) benefit-to-cost ratio

Question

Quizplus · Accepted Answer

Lifetime Value (LTV) is calculated by estimating a customer's future purchases based on their past purchases, factoring in the value of referrals they might generate, and subtracting the costs associated with maintaining the relationship with that customer.

Calculating a Customer's _____ Entails Estimating Their Future Purchases Based