The total financial value of a customer relationship across their entire relationship lifespan with a company is known as:
AShare of Customer
BCustomer Relationship Index
CCustomer Lifetime Value (CLV)
DCustomer Equity
Explanation
* Customer Lifetime Value (CLV) calculates the net profit attributed to the entire future relationship with a customer.
* Retaining existing profitable customers is significantly cheaper than acquiring new ones.
* High CLV encourages long-term customer relationship management (CRM) investments.
Exam Relevance
- Topic: Customer Relationship Management
- Subtopic: Customer Value Metrics
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