Some banks offer special accounts designed to attract junior high school students. These kids save in such small amounts that the accounts cost banks more to maintain than they are worth; however, bankers know that consumers are creatures of habit and hope that the young people they serve now will become adult customers. These banks recognize Multiple Choice

a. that operational excellence is an important macro strategy.

b. the lifetime value of customers.

c. that product excellence leads to loyal customers.

d. the importance of making decisions based on short-term results.

e. that as long as customers bring in some revenue, costs do not matter.

Question

Business

Rhys Levine

17 April, 11:15

Some banks offer special accounts designed to attract junior high school students. These kids save in such small amounts that the accounts cost banks more to maintain than they are worth; however, bankers know that consumers are creatures of habit and hope that the young people they serve now will become adult customers. These banks recognize Multiple Choice

a. that operational excellence is an important macro strategy.

b. the lifetime value of customers.

c. that product excellence leads to loyal customers.

d. the importance of making decisions based on short-term results.

e. that as long as customers bring in some revenue, costs do not matter.

+4

Answers (1)

Know the Answer?

Layla Norris · Answer 1

The lifetime value of customers

Explanation:

Customer Lifetime Value or CLTV is the present value of the future cash flows or the value of business attributed to the customer during his or her entire relationship with the company.