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:

Dividend Payout Ratio

The percentage of earnings paid to shareholders in dividends, calculated by dividing the total amount of dividends by the net income of the company.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from total revenue.

Total Assets

The sum of all assets owned by a company, including both current and long-term assets.

Planning Horizon

The timeframe over which future projections or strategic plans are made and considered.