Question: A company is evaluating two customers: Customer A has a high CLV due to frequent purchases, while Customer B has a lower CLV but is
A company is evaluating two customers: Customer A has a high CLV due to frequent
purchases, while Customer B has a lower CLV but is part of a large, growing customer
segment. The company is deciding whether to focus on acquiring more customers
like Customer A or invest in growing Customer Bs segment. Based on the concepts
of CLV and Customer Equity, which of the following strategies would best support
the company's longterm growth?
Invest in Customer Bs segment, as growing this customer base could increase
the company's overall Customer Equity.
Prioritize Customer A for all marketing campaigns, as the high CLV will always
yield higher Customer Equity.
Focus exclusively on Customer As segment since a higher CLV guarantees long
term profitability.
Stop investing in both customers, as individual CLVs do not impact the
company's overall growth.
Focus on acquiring new customers without considering the CLV or Customer
Equity, as market share growth is the only goal.
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