Customer relationship management and customer lifetime value Flashcards
1
Q
customer relationship management
A
development and maintenance of mutually beneficial long-term relationships with customers (often as individuals)
2
Q
customer lifetime value
A
net present value of the profit that a customer contributes to a firm over time
3
Q
customer life expectancy
A
1 / (1-customer retention rate)
4
Q
customer retention rate
A
likelihood that an existing customer will continue to be a customer in the next time
period
5
Q
net present value
A
A dollar today is worth more than a dollar tomorrow
6
Q
discount factor
A
1 / (1 + r)^t; r is the discount rate and t is the time period
