Customer Lifetime Value Is Equal to the Net Present Value

question 51

Multiple Choice

Customer lifetime value is equal to the net present value of the stream of profits over a customer's lifetime plus _____.

• A) the costs associated with satisfying that customer
• B) the costs associated with keeping that customer for more than 10 years
• C) the retention rate for all customers
• D) opportunity cost saved from having loyal customers
• E) the worth attributed to the equity a good customer can bring

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Definitions:

Building Trust

The process of establishing confidence and reliability in relationships through consistent actions and honesty.

One-Way Process

A type of communication or operation that moves in a single direction, without receiving feedback or interaction from the receiving end.

Encouraging Employees

Involves motivating and supporting staff to achieve their personal best and contribute positively to the organization.

Informal Communication Channel

The exchange of information in a casual, unstructured manner outside of formal communication channels, often among peers.