What is the average lifespan of a customer?

• A. The average time to make a first purchase.
• B. The average number of years a person remains an active customer.
• C. The average churn rate per month.
• D. The average length of a marketing contract.

Answer: (B)

The concept here is how we define the average lifespan of a customer in retail marketing. It measures how long, on average, a person remains an active customer—from their first purchase through the period they stay engaged before drifting away. It's a duration metric, not a speed to convert, not a monthly rate, and not a contract length. The other options describe time to first purchase, a churn rate, and contract duration, which don’t capture how long a customer stays once acquired. Therefore, the best answer is the average number of years a person remains an active customer. This lifespan informs how we project future revenue and plan retention, loyalty programs, and cross-channel re-engagement strategies.