Which measure estimates the total profit a firm expects from a customer throughout the entire relationship?
Correct answer: C. Customer lifetime value
- A. Customer acquisition cost
- B. Market share
- C. Customer lifetime value
- D. Average transaction value
Explanation
Customer lifetime value estimates the net value a customer is expected to generate over the whole relationship with the firm. Customer acquisition cost measures the expense of gaining the customer, not the customer's future contribution.
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