The First Step in Calculating the Lifetime Value of a Customer

The first step in calculating the lifetime value of a customer is to

A) multiply the average amount of each purchase, the average number of visits per year, and the average life span of a customer
B) calculate the cost of acquiring a customer
C) calculate the value of new customers gained through the customer's referral or positive word-of-mouth communications
D) calculate the average amount spent per purchase for all customers of the firm