Final answer:
The statement in the question is false; customer lifetime value is a measure of the total revenue a business expects from a customer, not the percentage of customers leaving in a year, which is the churn rate.
Step-by-step explanation:
The statement that customer lifetime value is the percentage of customers who leave in one year is false. Customer lifetime value (CLV) is a metric used to estimate the total revenue a business can reasonably expect from a single customer account throughout the business relationship. It looks at a customer's revenue value and compares that number to the company's predicted customer lifespan. Companies might use information such as the average purchase value, purchase frequency, and customer lifespan to calculate CLV. The percentage of customers who leave in one year is actually referred to as the churn rate, which is a different but related concept to CLV. Understanding these metrics is essential for businesses to gauge customer satisfaction, loyalty, and ultimately, profitability.