What is customer lifetime value (CLV) and how is it calculated?

• A. CLV is the net present value of all future profits from a customer, calculated as the sum of discounted margins from purchases minus acquisition costs, adjusted for churn and retention costs
• B. CLV is the total revenue from a customer in all purchases
• C. CLV is the net present value of all future profits from a customer, excluding retention costs
• D. CLV is the average profit per transaction times purchase frequency

Answer: (A)