Question

How is customer lifetime value defined?

a.

The total revenue generated from a customer over their lifetime

b.

The sum of costs incurred while servicing the customer over their lifetime

c.

The total number of products a customer purchases over their lifetime

d.

The sum of economic benefits that can be derived from building a sound relationship with a customer over a long period of time

Posted under IC38 Life Insurance Agent Exam

Answer: (d).The sum of economic benefits that can be derived from building a sound relationship with a customer over a long period of time Explanation:Customer lifetime value may be defined as the sum of economic benefits that can be derived from building a sound relationship with a customer over a long period of time.

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