In calculating the lifetime value of a market segment, the figures that require an accurate database are:
A) retention rates
B) fixed and variable costs
C) database costs and acquisition costs
D) marketing and advertising costs

Question

Quizplus · Accepted Answer

Retention rates are crucial in calculating the lifetime value of a market segment because they determine how long a customer will remain loyal and continue to generate revenue. Without an accurate database of retention rates, the calculation of lifetime value will be flawed. The other options listed may also impact the calculation, but retention rates are the most critical.

In Calculating the Lifetime Value of a Market Segment, the Figures