The Components of Customer Lifetime Value Include

question 18

Multiple Choice

The components of customer lifetime value include:

• A)all revenue after the first year.
• B)growth in amount spent with the enterprise.
• C)spending transferred from competitors.

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Definitions:

Estimates

Approximations or educated guesses used in planning and decision-making, especially in budgeting and forecasting.

Safety Margin

The difference between the actual performance of a business and the break-even point, indicating the buffer or cushion against drop in performance.

Product Mix

The Product Mix refers to the total variety of products and services offered by a company to its customers.

Variable Cost

Costs that change in proportion to the level of production or activity, such as raw materials and direct labor.