Which metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company?
A)Churn rate
B)CLTV
C)Cost per lead
D)Cost per sale

Question

Quizplus · Accepted Answer

CLTV, or Customer Lifetime Value, is a metric that provides an estimate of the total revenue a customer will generate for a company over the course of their relationship. This metric takes into account the costs associated with acquiring and servicing that customer, as well as the expected duration of the relationship. By understanding CLTV, companies can determine how much they can afford to spend on acquiring new customers and retaining existing ones.

Which Metric Is Based on the Relationship Between the Revenue