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
E) CRM rate

Question

Quizplus · Accepted Answer

The metric described is Customer Lifetime Value (CLTV). It takes into account the revenue generated by a customer, as well as the expenses involved in acquiring and serving that customer, and estimates the expected duration of their relationship with the company. CLTV helps companies make informed decisions about how much they are willing to invest in acquiring and retaining customers.

Which Metric Is Based on the Relationship Between the Revenue