Duration of the relationship is a critical parameter for calculating customer lifetime value.

Question

Quizplus · Accepted Answer

The duration of the relationship refers to how long a customer continues to do business with a company, and it is an essential parameter for calculating their lifetime value. A longer relationship typically means higher customer value as they generate more revenue and, in some cases, may make referrals or promote the company to others.

Duration of the Relationship Is a Critical Parameter for Calculating