1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
AlladinOne [14]
3 years ago
8

The emphasis on keeping customers for long periods of time is the central focus of ______ value and the reason firms focus on cu

stomer relationships.
Business
1 answer:
Archy [21]3 years ago
3 0

Answer:

Customer Lifetime Value

Explanation:

Customer Lifetime Value is a measure of how much amount of money a customer spends on your business/products/services over the course of his whole lifetime.

It is a predictor of how well you are doing to retain your existing customers.

Why is it important?

suppose you spend $10 to advertise your product (belt) and a customer buys 5 belts on average every year for 15 years. You get $12 profit for each belt sold.

12*5*15= 900$

Subtract the advertising cost

900-10=890$ This is your customer lifetime value

Now imagine what would have happen if we had to sell these belts to 75 different customers?

The advertising cost to attract 75 customers would have been too much and hence net profit and customer lifetime value would be very less.

75*10=750$

900-750=150$

This is why customer lifetime value is important and businesses focus on retaining their customers for longer periods.

You might be interested in
Record the following transactions of Fronke’s Fashions in a general journal assuming that they use the periodic system.
Mrrafil [7]

Explanation:

The Journal entry is given below:-

1. Purchase Dr,                       $1,280

         To cash                                      $1,280

(being merchandise is purchased)

2. Cash Dr,                                 $115

         To Purchase return                    $115

(Being merchandise is returned)

3. Purchase Dr,                           $668

    Freight In Dr,                          $43

           To Account payable                 $771

(being Purchase on credit)

4. Account payable                     $50

            To Purchase return                   $50

(Being purchase return is recorded)

5. Account payable                      $661

         To cash                                         $661

(Being cash is paid)

3 0
3 years ago
Her current campaign has a total investment of $25,500, generates 1,500 conversions, and has a CPA of $17. Which plan, built in
Butoxors [25]

Answer:

A

Explanation:

An investment of $40,000 to generate 2,000 conversions and a CPA of $20 will help Molly with her marketing goal to generate more sales than other investment plan

4 0
2 years ago
When a customer does not pay an invoice by a certain date, that customer might have to pay an additional _____.
olga55 [171]
You would have to either make them pay another installment.
8 0
3 years ago
Read 2 more answers
What happens when sellers compete with other sellers to meet consumer's demands, and consumers compete with other consumers to f
Marrrta [24]

Answer:

Markets are competitive.

Explanation:

In the competitive market, the number of sellers competed with each other in terms of prices, quality, maximize the market share.

In the given situation, various sellers are competed with each other for meeting out the consumer demands also at the same time it offers the goods at lowest cost and highest quality so that it capture the whole market

Therefore the second option is correct

6 0
3 years ago
A higher level of interest income can be received if a savings account offers a promotional rate.
KiRa [710]
True. One would get the regular stated interest rate plus the additional promotional rate. Thus one would recieve a higher income via the savings rate.
4 0
3 years ago
Other questions:
  • In february, when paula, the manager of a landscaping company, is modifying worker schedules to handle the expected increase in
    9·1 answer
  • Burgundy Manufacturing uses a process cost system and computes cost using the weighted average method. During the current period
    14·1 answer
  • Use the following data to compute total manufacturing costs for the month: Sales commissions $ 10,800 Direct labor 39,600 Indire
    13·1 answer
  • When pooling variances, the resulting value will be closer to the variance for the sample with the smaller number of scores.​?
    8·2 answers
  • Indicate whether each of the following actions represents foreign direct investment or foreign portfolio investment. Foreign Dir
    10·1 answer
  • Which choice is not a characteristic of a competitive market?
    13·1 answer
  • The nth term of the GP is (-1)^n(2)^n.
    11·1 answer
  • Zachary Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly
    6·1 answer
  • You can have your cake or chose to eat it
    5·1 answer
  • A mirror should be centered on a wall. The mirror is 4 feet wide and the wall is 20 feet wide. Which equation helps determine th
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!