mukulsinghal001/customer-lifetime-prediction-using-python
What is CLV or LTV? CLV or LTV is a metric that helps you measure the customer's lifetime value to a business. In this kernel, I am sharing the customer lifetime value prediction using BG-NBD, Pareto, NBD & Gamma Model on top of RFM in Python.
This project helps e-commerce and retail businesses predict how much revenue each customer will generate over their entire relationship. By inputting historical transaction data (like purchases, dates, and prices), it outputs an estimated Customer Lifetime Value (CLV) for each customer and segments them into groups based on that value. Marketing managers and strategists can then use this information to optimize campaigns and customer acquisition costs.
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Use this if you manage marketing or customer strategy for a non-contractual business (like an online retail store) and need to understand the long-term value of your customers to guide spending and engagement.
Not ideal if your business operates on a subscription or contractual model where customer churn is explicitly known, as this focuses on predicting silent departures.
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Dec 04, 2022
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