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One of the most important benefits of analytical CRM is the ability to determine Customer Lifetime Value. True or False

User Pusparaj
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Final answer:

The statement is true. Analytical CRM enables companies to determine Customer Lifetime Value (CLV), which is a measure of the predicted profit from a customer over their entire relationship with the company.

Step-by-step explanation:

The statement is true. One of the most important benefits of analytical CRM (Customer Relationship Management) is the ability to determine Customer Lifetime Value (CLV). CLV is a measure of the predicted profit that a company can expect to earn from a customer over the course of their entire relationship with the company.

By using analytical CRM tools and techniques, companies can track each customer's behavior, preferences, and purchasing patterns. This information allows them to segment their customer base and identify which customers are most valuable and have the highest CLV.

For example, a clothing retailer may use analytical CRM to determine that a loyal customer who frequently makes large purchases has a high CLV. The retailer can then prioritize offering personalized discounts and promotions to this customer, ultimately increasing their overall profitability.

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