Customer Lifetime Value

clv1Probabilistic customer base models have gained favor because they can richly model multiple processes of customer behavior:

  • Quantity: How many purchases will individual customers make?
  • Timing: How many engagements does it take to convert a customer? How long will a subscriber stay?
  • Choice: How many customers will convert? Which brand or category choices will they make?

These questions can be flexibly combined into custom analyses, such as modeling engagement (timing + quantity) or brand loyalty (choice + quantity).