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    Question

    Customer Lifetime Value refers to:

    A Single purchase value Correct Answer Incorrect Answer
    B Total profit from customer over time Correct Answer Incorrect Answer
    C Cost of marketing Correct Answer Incorrect Answer
    D Discount offered Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Detailed Concept Explanation CLV – Customer Lifetime Value represents the total net profit a bank expects to earn from a customer over the entire relationship period. Used in:

    • CRM strategy
    • Retention planning
    Why other options are NOT correct
    • Single purchase value: Short-term metric
    • Cost of marketing: Expense, not value
    • Discount offered: Pricing element

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