Final answer:
option d,For Shannon, understanding CLV is crucial because it aids in improving customer retention, targeting marketing strategies more effectively, and increasing revenue per customer, contributing to an overall better management of customer relationships and sustainable business growth.
Step-by-step explanation:
Understanding Customer Lifetime Value (CLV) offers various benefits for marketing consultants like Shannon. Most importantly, it allows for improved customer retention by predicting the profitability of long-term relationships with customers. This enables businesses to allocate resources effectively, contributing to sustainable growth. Additionally, CLV helps in formulating better targeted marketing strategies.
By knowing the value of different customer segments, Shannon can devise more personalized marketing efforts, optimizing the marketing budget. Moreover, focusing on CLV leads to an increased revenue per customer because it emphasizes nurturing existing customers to maximize their spending over time, rather than solely pursuing new customers. Therefore, the answer to Shannon's question is (d) All of the above.