Customer Lifetime Value (LTV)

Four modeling tiers from descriptive to Monte Carlo simulation. Always outputs an inline HTML dashboard + exec recommendation. Reference book: Katsov §3.5.7 (pp. 113–120).

Core LTV Formula (Berger & Nasr, 1998 — Katsov eq. 3.23)

LTV(u) = Σ_{t=1}^{T}  (R − C) · r^(t−1) / (1 + d)^(t−1)

Parameters:

• R — average revenue per customer per period
• C — average cost per customer per period
• r — retention rate (probability of staying one more period)
• d — discount rate (cost of capital per period)
• T — projection horizon (periods)