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CMP - Certified Marketing Professional CMP Marketing Analytics and Metrics Questions and Answers

A marketing manager for a SaaS company is analyzing two customer segments.
Segment A has a Customer Acquisition Cost (CAC) of $50 and a Customer Lifetime Value (CLV) of $200.

Segment B has a CAC of $100 and a CLV of $550.

To maximize long-term profitability, which statement accurately guides the budget allocation strategy?

Select your answer