Customer Lifetime Value Includes the Net Present Value of the Stream

question 119

Multiple Choice

Customer lifetime value includes the net present value of the stream of profits over a customer's lifetime and _____.

• 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:

Client Specification

Detailed requirements provided by a client regarding the desired features and standards for a project or product.

Resources

Assets, materials, or inputs used in the process of achieving goals or completing projects, including human skills, technology, and financial assets.

Mean

A statistical measure representing the average value of a set of numbers, calculated as the sum of all the values divided by the number of values.

Standard Deviations

A statistical measure that quantifies the amount of variation or dispersion of a set of values.