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Nookie1986 [14]
3 years ago
5

Which metric is based on the relationship between the revenue produced by a specific customer, the expenses incurred in acquirin

g and servicing that customer, and the expected life of the relationship between the customer and the company?1. Churn rate2. CLTV3. Cost per lead4. Cost per sale
Business
1 answer:
exis [7]3 years ago
6 0

Answer:

2) CLTV

Explanation:

Customer lifetime value (CLTV) is simply how much profit do you expect to earn from a specific customer, or group of customers. There are several ways of calculating CLTV, but I believe this is the easiest one.

CLV = T x AOV x AGM x ALT

  • T = average transactions per month
  • AOV = average order value
  • AGM = average gross margin
  • ALT = average life span

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