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Which one of the following best describes the present value of the stream of future profits expected over the customer s life time purchase?

  • Customers Life time value best describes the present value of the stream of future profits expected over the customer s life time purchase.
  • Customer lifetime value (CLV) is a measure of the present value of the stream of future profits expected to be generated by a customer over their lifetime.
  • CLV helps organizations to understand the long-term value of a customer, taking into account not just their current purchases, but also their potential for future purchases, referrals, and other contributions to the business.
  • By understanding CLV, organizations can make more informed decisions about how to allocate resources, such as marketing and customer service, to maximize the value they receive from their customers.