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Customer life expectancy increases ________ with customer retention.

A) hyperbolically
B) parabolically
C) exponentially
D) linearly
E) cubically

1 Answer

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Final answer:

Customer life expectancy increases exponentially with customer retention, reflecting compounding growth similar to certain population growth models.

Step-by-step explanation:

Customer life expectancy increases exponentially with customer retention. This concept aligns with patterns observed in other scenarios where growth compounds over time, such as population growth where the number of individuals can double at a consistent rate until resources become limited. Similarly, in business, customers may become more valuable over time as they continue to purchase or use services, leading to higher lifetime value which follows an exponential trend rather than a linear one.

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