BUSINESS ADMINISTRATION
CUSTOMER RELATION MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Identifies how much a company has to spend to acquire new customers
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Targets potentially profitable customers
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Identifies how much a company has to spend to retain customers
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Helps to determine the projected lifetime of the company
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Detailed explanation-1: -CLV will help you find balance in terms of short-term and long-term marketing goals and demonstrate a better understanding of financial return on your investments. CLV encourages better decision making by teaching marketers to spend less time acquiring customers with lower value. And the bottom line?
Detailed explanation-2: -July 20, 2022. Customer lifetime value (CLV) is a business metric that measures how much a business can plan to earn from the average customer over the course of the relationship. Differences in products, costs, purchase frequencies and purchase volumes can make customer lifetime value calculations complex.
Detailed explanation-3: -It provides a picture of the business long-term and its financial viability. High CLV is an indicator of product-market fit, brand loyalty and recurring revenue from existing customers. It is recommended that ecommerce businesses monitor and optimize customer lifetime value if they are looking for steady growth.
Detailed explanation-4: -Understanding CLV allows you to make informed decisions based on how long a customer typically buys from you and what they spend over the lifetime of that relationship. This metric can help inform your strategy on customer acquisition, retention, customer service, and even the quality of your products and services.