CLV or Customer Lifetime Value is an important number in that it represents ___________.
A) What a customer spends in a year
B) An upper limit on spending to acquire a new customer
C) The importance of government contracts that have less risk
D) The loss one could expect from a new competitor
E) The discount rate of a given customer

Question

Quizplus · Accepted Answer

Customer Lifetime Value (CLV) helps determine the maximum amount a company should spend on acquiring a new customer, as it represents the total revenue a business can reasonably expect from a single customer account throughout the business relationship.

CLV or Customer Lifetime Value Is an Important Number in That