Question

Tyche Inc., an electronics manufacturer, wants to assess future revenues and profit streams from each of its customers. It is focusing on the satisfaction and retention of its more profitable customers instead of spending its marketing efforts on attracting uninterested customers. Tyche is using _____ as a measure of effectiveness.

Answer 1

Answer:

These are the options for the question

A. Customer Profitability Estimation

B. Consumer Worth Evaluation

C. Customer Lifetime Value

D. breakeven point

E. cost per order

And this is the correct answer:

C. Customer Lifetime Value

Explanation:

Customer Lifetime Value is the assessment of the value that a particular customer will add, or give to a company, during his or her lifetime.

Tyche Inc. is focusing on customer lifetime value because its business strategy consists in catering to loyal customers who are likely to spend money on the company during an important percentage of their lifetimes.