The subscription manager at Cosmopolitan magazine keeps track of the subscription renewal rate, which is a good measure of customer lifetime value. True False

Question

Business

Jakayla Potts

23 October, 19:09

The subscription manager at Cosmopolitan magazine keeps track of the subscription renewal rate, which is a good measure of customer lifetime value. True False

+3

Answers (2)

Know the Answer?

Deacon · Answer 1

The statement is: False.

Explanation:

Customer Lifetime Value or CLV refers to the total amount of money customers will spend on a business. It is an important gauge for firms to find out if costumers' spending will be high enough for a company to offer extra aid to consumers or not if their investment does not justify the costs.

Holly Mcconnell · Answer 2

FALSE.

Explanation:

This question is false. Due to the fact that the customer's lifetime value is a metric used by an organization's marketing and sales area in order to estimate the revenue and future profit that a customer can generate for the company. This is a calculation that can be performed including some factors, such as the value and recurrence of purchases of products and services offered by the organization, including derivative products.

Therefore, it is incorrect to say that controlling the subscription renewal rate is a good strategy for measuring the customer's lifetime value. Because the more subscriptions the Cosmopolitan magazine presents, the greater the future profit that a customer can generate for the company.