Which of the following statements about the lifetime value of a customer is true?
A)CRM helps companies identify their customer's lifetime value.
B)A company can either increase customer share or a customer's lifetime value but not both.
C)A customer's lifetime value is easy to calculate.
D)All customers have the same lifetime value.
E)All of the above

Question

Quizplus · Accepted Answer

CRM (Customer Relationship Management) software helps companies analyze customer data and purchasing behavior to identify the lifetime value of a customer. This information can then be used to develop effective marketing campaigns and personalized experiences to increase customer loyalty and retention.

B is incorrect because a company can work to increase both customer share and a customer's lifetime value simultaneously.
 
C is incorrect because calculating the lifetime value of a customer can be complex and may involve factors such as customer acquisition costs, retention costs, and revenue potential over time.

D is incorrect because the lifetime value of a customer can vary greatly depending on factors such as their purchasing habits, loyalty to the brand, and potential for future sales.

Which of the Following Statements About the Lifetime Value of a Customer