Quiz Customer Life-time Value (CLV)

What does customer lifetime value (CLV) estimate?

The average price of all products a business sells

The total value a customer brings to a business across their whole relationship with it

The value of a customer’s very first purchase only

A business’s total revenue for one calendar year

Which three figures are usually combined to estimate CLV?

Profit margin, market share, and brand awareness

Average purchase value, purchase frequency, and customer lifespan

Advertising spend, staff costs, and rent

Customer satisfaction score, Net Promoter Score, and churn rate

True or false: a business's CLV should ideally be lower than its customer acquisition cost (CAC).

False

True