Page $3$ of $10$

Question $3(1$ point$)$

Listen

Which of the following statements related to customer lifetime value are true?

$($Select all that apply$)$

The initial margin generated by a customer in Year $1$ is equivalent to a customer's lifetime value to the firm.

Simply multiple the margin generated by a customer by $10$ years to calculate the customer's lifetime value to the firm.

It's important to calculate the present value of the future stream of margin generated by a customer to evaluate their true worth to the firm.

If you don't know retention rate, then plug a $100\%$ churn rate into the CLV formula. That will provide a reasonable CLV estimate for the firm.