Which metric should the consultant recommend to help UC emphasize the importance of customer retention to the overall business strategy?

Annual sales numbers change depending on renewal periods and new products. Sales managers at Universal Containers (UC) want to emphasize the importance of customer retention when prioritizing the pipeline and customer engagement for the sales team.

Which metric should the consultant recommend to help UC emphasize the importance of customer retention to the overall business strategy?
A . Annual Contract Value (ACV)
B . Total Pipeline Value
C . Customer Lifetime Value (CLV)

Answer: C

Explanation:

Customer Lifetime Value (CLV) measures the total value a customer brings over the entire duration of their relationship with the company. Emphasizing CLV helps sales teams focus on customer retention and long-term relationship value, which aligns with Universal Containers’ goal of prioritizing customer retention. By tracking CLV, sales managers can guide reps to prioritize engagement with high-value customers to boost long-term revenue.

Annual Contract Value (ACV) and Total Pipeline Value focus more on short-term gains, which might not align as directly with customer retention and long-term strategy. Salesforce Documentation

Reference: Customer Lifetime Value in Salesforce

Using Metrics to Drive Retention