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.

Customer Lifetime Value Prediction

FLO wants to determine roadmap for sales and marketing activities. In order for the company to make a medium long -term plan, it is necessary to estimate the potential value that existing customers will provide to the company in the future.

Introduction to create a CLI and custom Python package. The package contains some functions to apply RFM and BG-NBD.

DATA ANALYSIS

Using real online retail data from a store, customer value was predicted and segmented using two probability models: BG/NBD and Gamma-Gamma. An example was used to illustrate the implementation process of the customer lifetime value analysis model and segmentation model.

CLTV prediction, BGNBD, Gamma Gamma

A retail company wants to create a roadmap for its sales and marketing activities. To plan for the medium to long term, the company needs to predict the potential value that existing customers will bring in the future.

This project is based on the desire of an online store to segment its customers and determine its marketing strategies according to these segments.