Question

A Subaru representative has a solid relationship with Phil, a satisfied customer. Phil loves Subaru and will not accept anything else. The representative determines that if Phil continues to do business with Subaru every time he wants to purchase a new car, his total value to the company would be $350,000. This includes purchases made by customers who were referred to the firm by Phil. The Subaru representative has calculated Phil's _______

Answer 1

The Subaru representative has calculated the lifetime value of a loyal customer named Phil, which includes his future purchases and referrals, emphasizing the importance of long-term customer relationships and a trustworthy reputation for business sustainability.

Step-by-step explanation:

The Subaru representative has calculated Phil's lifetime value to the company. This takes into account all the purchases Phil will make, as well as those made by customers who were referred to Subaru by Phil. A company's lifetime value calculation is an important metric for understanding the long-term benefits of maintaining a relationship with a customer, versus the short-term gains from a single transaction.

It also encourages businesses to deliver high-quality products and services, and to cultivate a trustworthy reputation, as this can lead to greater customer loyalty and referral business, ultimately supporting long-term profits and sustainability.

Answer 2

The correct answer would be, Customer's life time Value.

Step-by-step explanation:

Subaru is an automobile company who is famous for its boxer engines in the cars above 1500 cc. Subaru is a division of Japanese transportation conglomerate.

A representative of Subaru has solid relationship with a customer, Phil. Phil is such a satisfied customer that he only wants Subaru every time he goes for a new purchase. Also he refers a lot of people to Subaru. The representative determines that if Phil continue to do so, his total value to the company would be $350,000. This figure includes Phil purchases as well as the purchases made by the people which he referred to Subaru. So this means, the representative has calculated the Phil's Lifetime Value.