Question

When implementing Next-Best-Action, the Customer Lifetime Value Threshold is typically used to ____________.

A) determine if the customer is eligible
B) prioritize customers
C) prioritize high-value propositions
D) calculate the customer's lifetime value

Answer 1

The Customer Lifetime Value Threshold in Next-Best-Action is typically used to prioritize customers, identifying those who are likely to be the most valuable over time.

Step-by-step explanation:

When implementing Next-Best-Action, the Customer Lifetime Value Threshold is typically used to prioritize customers. This business strategy involves evaluating the potential future value of a customer to determine how a business should interact with them, in order to foster long-term profitable relationships. Companies use the Customer Lifetime Value (CLV) as a threshold to identify high-value customers who are likely to bring in the most revenue over time. Therefore, by focusing on these customers, businesses aim to allocate their resources more effectively and personalize their marketing and customer service efforts to retain these valuable customers.