AWS Certified AI Practitioner AIF-C01 Practice Question
A retailer launches a generative-AI chatbot that suggests personalized add-on items during checkout. The company wants one metric that shows whether the bot is boosting revenue from ongoing customer relationships, not just single orders. Which metric should they track?
Customer lifetime value (CLV) captures the total revenue a business expects from an individual customer across the entire relationship and therefore shows whether generative-AI recommendations are increasing long-term spending. Average order value (AOV) looks only at a single transaction, customer acquisition cost (CAC) measures how much it costs to obtain a new buyer, and net promoter score (NPS) reflects satisfaction rather than revenue. None of these alternatives directly indicate the cumulative revenue impact per customer that CLV provides.
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What is Customer Lifetime Value (CLV)?
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Why isn’t Average Order Value (AOV) the correct metric in this scenario?
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How does a generative-AI chatbot influence Customer Lifetime Value (CLV)?
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AWS Certified AI Practitioner AIF-C01
Fundamentals of Generative AI
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