IGNOU BRL 109 2026 - Customer Lifetime Value (CLV) is increasingly used as a basi

Question

Customer Lifetime Value (CLV) is increasingly used as a basis for managerial decision-making". Explain the concept of CLV and discuss its importance.

12 Feb 2026

Answer :

Word Count : 521

Customer Lifetime Value (CLV) is a metric used by businesses to estimate the total revenue or profit a customer will generate for the company over the entire duration of their relationship. CLV is an essential tool in Customer Value Management (CVM) as it helps businesses make informed decisions about customer acquisition, retention, and resource allocation. By understanding the potential value of a customer over time, companies can prioritize investments in customer relationships and make strategic decisions about pricing, marketing, and customer service. CLV is calculated by considering various factors, such as the average purchase value, purchase frequency, customer retention rate, and the customer’s lifespan. The formula typically takes into account the revenue generated by a customer over a given time period, subtracting the cost of acquiring and serving that customer. It is also adjusted for the time value of money, meaning

_____ ________ ________ ___ ______ ______ ___ _____ _________ _____ ___ _____.
_______ _______ _____ ________ _____ ______ _______ ________ _________ _____ _________.
_____ __________ ____ _____ ____ __________ _________ ______ ________ ______.
________ ____ ________ ____ ____.
__________ ____ ___ __________ ___ ___ _________ ________ _________ ___.
_____ _______ __________ __________ ______ _________ ___ _________ ______ ____ __________ ____.
______ _____ ________ _________ ______.
_________ ___ __________ ___ _________.
_______ ____ ____ _________ ______ _______ ____ _________ _________ _______.
______ _______ ________ __________ ______ _________ _________ _____.
___ ____ ________ ______ ______ __________ ___ ____ ____ _________ ___.
________ ____ ______ _________ ______ ____ _______ ______ _______ _________ __________.
________ _______ ____ ___ _____ ________ _______ _________ _____ __________.
_________ ______ _________ ________ __________ _______ __________ ________ _________ _____ ____ ____.
_______ _________ ________ ___ _______ _____ __________ _____ _______ ______ _____ ________.
_________ _______ _________ ___ _______ _________ ______ _____ ____.
____ ________ _____ __________ _________ ___.
________ __________ ______ __________ ____.
________ ___ ______ __________ _______ __________ ____ ____ _________ ______.
_____ _____ __________ __________ _______ ______.
______ _______ ___ _______ _______ ______ _______ ________ ________.
____ _____ ________ _______ ____ _______.
_____ _____ ________ _______ ________ _________ _______ ___ _______ _______ _____ ____.
_____ ____ ________ ____ ____ _______ _________.
_____ ____ ___ ____ ________ _______ _________ _____ _______.
______ ______ __________ ________ ____ ______.
_______ _________ ____ ___ ________.
_______ ______ ____ ___ ___ ____ ________ _______ ________ ___ ______.
_______ _____ _________ _____ __________ ______ ______ _________ _______ ________ ___.
____ ____ _________ ______ _________ ____ _________ ________ _________ __________ ______.
____ __________ __________ ________ _______ _______ _______ _____ __________ ______.
____ ________ _______ ______ ___ ________ ___ _________ _______ ________ _________.
______ _____ ________ ________ ___ _____ ________.
___ _______ _________ ____ _______ __________ ___ ______ ______.
________ ____ ________ __________ ___ _________ _________ ______ ___ ___.
_______ ____ ______ _________ ___.
_____ ______ _______ __________ ____ _____ ________ _________ _______ ______ _____.
___ ______ ___ _______ _____ ________ _____ ________ _________ _____ __________ _________.
________ ___ _____ _________ ____ _______ __________ _______ _________ ________.
__________ __________ ____ ______ ___ ______ _________.
________ ______ ______ ________ _______ ___ _________ ______ _______ _________.
___ ____ ___ __________ _______ __________ ___ _____ ________ ______.
_______.

IGNOU ACADEMY

Your IGNOU journey, made easier.

Solved Assignments
Study Notes
Guess Papers
Question Papers

Call Us WhatsApp

STUDY • PREPARE • SUCCEED

Skip in 10