Question

The net present value of the profits a customer generates over the average customer like is:

1) churn
2) customer life time value
3) defection rate
4) customer retention

Answer 1

The net present value of the profits a customer generates over the average customer life is known as the customer lifetime value. It is a financial metric used to determine the total expected value of a customer's future cash flows to a business.

Step-by-step explanation:

The net present value of the profits a customer generates over the average customer life is known as the customer lifetime value. It is a financial metric used to determine the total expected value of a customer's future cash flows to a business.

Customer lifetime value takes into account factors such as the customer's purchase frequency, average purchase value, and customer retention rate. By calculating the present discounted value of these future profits, businesses can evaluate the long-term profitability of acquiring and retaining customers.