In the Equation to Calculate the Economic Value of a Customer

question 56

Multiple Choice

In the equation to calculate the economic value of a customer, V = R × F × M / D, how is the value for F estimated?

• A) It is estimated to be the total number of purchases the customer has made.
• B) It is estimated to be the number of visits of the customer without actually spending on an item.
• C) It is estimated to be the purchase frequency per year.
• D) It is estimated to be the number of customers defecting per year.

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Definitions:

Customer Transactions

Financial interactions or operations between a business and its customers, including sales, returns, and payments.

Create Invoices

The process of generating billing documents for goods sold or services provided, detailing amounts owed by customers.

Main Categories

This term likely refers to the primary classifications or groupings within a system, such as accounting, where transactions can be sorted.

Owners

Individuals or entities who possess ownership interest in a company or property.