Which innovative approach to Customer Lifetime Value calculation has revolutionized how luxury retailers allocate their marketing budgets?

Customer Lifetime Value (CLV) has become a critical metric in retail strategy. While acquisition costs continue to rise, smart retailers are focusing on maximizing the long-term value of existing customers. This trivia tests your knowledge about CLV calculations, implementation strategies, and how leading retailers have leveraged this metric to transform their business models. Can you identify the correct approach among these retail CLV strategies?

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The RFM-V Model (Recency, Frequency, Monetary Value, and Virality) that factors in a customer's social media influence on peer purchasing
The Predictive Decay Algorithm that assumes all customer value naturally diminishes by 15% annually regardless of engagement efforts
The One-Time Purchase Maximizer that focuses exclusively on increasing the value of a single transaction rather than relationship longevity
The Geographic Concentration Model that calculates CLV based primarily on a customer's proximity to flagship stores