Final answer:
The lifetime value of a customer is a business metric influenced by average revenues, sales of additional products and services, referrals, and customer retention length, but not directly by the communication strategy.
Step-by-step explanation:
The lifetime value of a customer is a key metric in business that estimates the total revenue that a business can reasonably expect from a single customer account throughout the business relationship. This metric takes into account various factors, including:
- Average revenues generated per relevant time period over the customer's lifetime.
- Sales of additional products and services over time.
- Referrals generated by the customer over time.
- The length of the average "lifetime" or customer retention period.
However, the communication strategy is not a direct factor affecting the lifetime value of a customer. Communication strategies can indirectly influence customer retention and satisfaction, but they do not directly alter the calculation of lifetime value.