Compare lifetime values

The lifetime value of a customer works very differently from industry to industry. Show your understanding of the different shapes that lifetime value can take.

You will need this information to answer the questions about the three charts.

Chart 1 shows profit traceable to individual customer increasing along with the time of the customer relationship.

Chart 2 shows profit traceable to individual customer varying from year to year, with no discernible trend.

Chart 3 shows the highest profit traceable to individual customer at the beginning of the customer relationship. As time of customer relationship progresses, the profit traceable to the individual customer goes up and down, but never reaches the profit gained at the beginning of the relationship.