Which type of enterprise software is used to analyze Customer Lifetime Value (CLTV)?

The correct answer is based on the specific functionalities associated with different types of enterprise software. Analytical CRM is designed primarily to gather, store, and analyze customer data for the purpose of improving customer relationships and business profitability. This type of software focuses on reporting, data mining, and forecasting, which makes it highly suitable for calculating metrics like Customer Lifetime Value (CLTV).

CLTV is a critical metric that evaluates the total revenue a business can expect from a single customer account throughout the business relationship. Analytical CRMs utilize various data analytics techniques, allowing businesses to assess past behaviors of customers and predict future profitability based on this analysis. By leveraging data about purchasing patterns, customer interactions, and retention rates, companies can effectively determine CLTV and make informed strategic decisions.

In contrast, the other types of enterprise software have different primary functions. For example, PRM (Partner Relationship Management) focuses on improving the relationship and collaboration between businesses and their partners, which does not directly pertain to analyzing customer data. Operational CRM centers around managing day-to-day customer interactions and activities, such as sales tracking, customer service management, and support. ERM (Employee Relationship Management) is unrelated to customer analytics, as it deals with optimizing employee interactions and performance within an organization.

Thus,