Customer Lifetime Value (CLV)is an Important Number in That It

question 52

Multiple Choice

Customer lifetime value (CLV) is an important number in that it represents ___________.

• A)What a customer spends in a year
• B)An upper limit on spending to acquire a new customer
• C)The importance of government contracts that have less risk
• D)The loss one could expect from a new competitor
• E)The discount rate of a given customer

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Definitions:

Independent Agents

Salespeople who sell a manufacturer’s products on an extended contract basis but are not employees of the manufacturer; also known as manufacturer’s representatives or reps.

Selling Company

A company or entity that is engaged in the act of selling goods, services, or both to consumers or other businesses.

New Buy

A purchase decision where a customer is buying a product or service for the first time, requiring significant research and evaluation.

Modified New Buy

A purchasing situation wherein a company makes some changes or modifications to a product they are buying again.