Final answer:
The lifetime value of a customer represents the total anticipated revenue a business can reasonably expect from a single customer account throughout the business relationship. It highlights the importance of maintaining customer loyalty as it's more cost-effective than acquiring new customers.
Step-by-step explanation:
The correct answer to the question is A. Lifetime value. The lifetime value of a customer is the increased value or profit that accrues for each additional customer who remains loyal to a company rather than defecting to the competition. This concept reflects the total amount of money a customer is expected to spend in a business, or on its products, throughout their relationship with the company. Understanding customer lifetime value is crucial for businesses as it helps them shape strategies to retain customers, determine customer segments to focus on, and calculate the long-term financial value each customer brings.