Which of the following is considered a deduction when calculating Customer Lifetime Value?

When calculating Customer Lifetime Value (CLV), it is essential to identify all costs associated with maintaining and serving a customer over time. Service Delivery costs are directly related to how a business fulfills its promise to the customer. This includes expenses such as logistics, operations, and any resources dedicated to delivering the product or service. By incorporating Service Delivery costs into the CLV calculation, businesses can better understand the profitability of each customer over their expected lifespan.

Deductions from CLV provide insights into how much each customer ultimately contributes to the company's bottom line. While sales and marketing expenses may affect overall revenue, they are generally considered investment costs rather than ongoing operational costs associated with a customer relationship. Additionally, factors like customer feedback and competitor pricing, while important in broader marketing strategy, do not typically represent direct deductions that would alter the immediate calculation of Customer Lifetime Value in the way that service delivery costs do.