If average monthly recurring revenue is 40 and average customer lifetime is 18 months, LTV is

Prepare for the CIMA Strategic Management (E3) Exam with comprehensive flashcards and multiple-choice questions. Each question offers hints and explanations to ensure you are ready for your test!

Multiple Choice

If average monthly recurring revenue is 40 and average customer lifetime is 18 months, LTV is

Explanation:
LTV equals the total revenue a customer brings over their lifetime. With a monthly recurring revenue of 40 and an average customer lifetime of 18 months, multiply: 40 × 18 = 720. So the lifetime value is 720 (in the same currency units). The other options would require different monthly revenue or a different customer lifetime.

LTV equals the total revenue a customer brings over their lifetime. With a monthly recurring revenue of 40 and an average customer lifetime of 18 months, multiply: 40 × 18 = 720. So the lifetime value is 720 (in the same currency units). The other options would require different monthly revenue or a different customer lifetime.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy