Discuss the value of long-term customer relationships.
Expert Answer
As global markets have become increasingly competitive andvolatile, many firms have made it the ultimate objective of theirmarketing strategy to build a continuing long-term relationshipbetween the organization and the customer. They are taking actionto increase lifetime customer value, the present value of a streamof revenue that can be produced by a customer over time. For anautomobile manufacturer, for instance, the lifetime value of afirst-time car buyer who can be kept satisfied and loyal to themanufacturer so that he buys all his cars from the same company isworth well over a million dollars.