Which of the following is correct about customer lifetime value (CLTV)?

Customer Lifetime Value (CLTV) is a predictive metric estimating the total revenue a business can reasonably expect from a customer during their entire relationship.

Statement i: Correct. Many organizations calculate CLTV using historic transactional data, often looking at sales records over the past 12–18 months to establish baselines.

Statement ii: Correct. The primary purpose of CLTV is to help marketing, sales, and retail teams understand customer value, enabling them to allocate budgets effectively for retention, promotions, and personalized marketing.

Thus, both statements are correct → Option C (Both i and ii).