If a specific campaign does not break even in the short run, it will not be profitable in the long run, even if we factor in customer lifetime value.

Question

Quizplus · Accepted Answer

This statement is false. Customer lifetime value takes into account the potential future revenue from a customer beyond the initial purchase, which means that even if a campaign does not immediately break even, it may still be profitable in the long run thanks to repeat customers or further sales to the same customer.

If a Specific Campaign Does Not Break Even in the Short