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The customer loyalty index (CLI) is a function of total sales, customer lifetime value, and shareholder dividend.

a)True
b)False

1 Answer

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Final answer:

False, The Customer Loyalty Index (CLI) is not a function of total sales, customer lifetime value, and shareholder dividend.

Step-by-step explanation:

The statement in the question is false. The Customer Loyalty Index (CLI) is not a function of total sales, customer lifetime value, and shareholder dividend. The CLI is a metric used to measure the level of customer loyalty towards a business or brand.

It is calculated based on factors like customer satisfaction, repeat purchases, and customer retention. For example, a company may calculate the CLI by analyzing the percentage of customers who continue to purchase their products or services over a given period.

Higher CLI scores indicate a stronger level of customer loyalty, which is beneficial for a company's long-term success. Total sales, customer lifetime value, and shareholder dividend are important business metrics, but they are not directly used in calculating the CLI.

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