Final answer:
Customer lifetime value (CLV) is the total value of all purchases a customer will make over the course of their relationship with a company. It is a critical metric for understanding the long-term worth of a customer to a business, and it guides strategic decisions related to customer acquisition, retention, and marketing. The correct option is C.
Step-by-step explanation:
The total stream of purchases that a customer could contribute to the company over the life of the relationship is known as the customer lifetime value (CLV).
This concept represents the total worth to a business of a customer's full range of purchases both now and in the future. It is an important metric that companies use to gauge how much revenue they can expect from a relationship with a customer over time.
CLV helps businesses understand the economic value a single customer brings and influences how much companies are willing to spend to acquire each customer and how they approach customer service and relationship management.
A higher CLV indicates more value and often leads a company to prioritize retention strategies for those customers. Understanding CLV can also help companies tailor their marketing efforts to target the most profitable customers and optimize their overall profitability.