Question

Which metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company?

A) Cost per lead
B) Cost per sale
C) Churn rate
D) CLTV

Answer 1

D) CLTV

Step-by-step explanation:

Customer LifeTime Value (CLTV) refers to the total revenues that you expect to generate from a specific customer during the relationship with the customer. For you to acquire a customer, you need to spend an amount known as the CAC (Customer Acquisition Cost). If profit is to be generated, the revenue should be greater than the cost of customer acquisition. CLTV is used to know the financial value of each customer.

Answer 2

D) CLTV

Step-by-step explanation:

In Marketing, Combined loan-to-value (CLTV) metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company.