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Customer lifetime value (CLV) describes a customer's long-term economic value for a business. This metric is widely used in marketing, for example, to select customers for a marketing campaign. However, modeling CLV is challenging. When…

Computation · Statistics 2026-02-11 Markus Meierer , Patrick Bachmann , Jeffrey Näf , Patrik Schilter , René Algesheimer

Companies across the globe are keen on targeting potential high-value customers in an attempt to expand revenue and this could be achieved only by understanding the customers more. Customer Lifetime Value (CLV) is the total monetary value…

Machine Learning · Computer Science 2024-01-04 Karan Gadgil , Sukhpal Singh Gill , Ahmed M. Abdelmoniem

Financial institutions increasingly adopt customer-centric strategies to enhance profitability and build long-term relationships. While Customer Lifetime Value (CLV) is a core metric, its calculations often rely solely on single-entity…

Estimating customer lifetime value (CLV or LTV) is extremely important for making better business decisions. The proposed flexible proportional hazards model allows an estimation of lifetime value in contractual settings. This approach…

Applications · Statistics 2022-08-04 Vadim Pliner

As a measure of the long-term contribution produced by customers in a service or product relationship, life-time value, or LTV, can more comprehensively find the optimal strategy for service delivery. However, it is challenging to…

Artificial Intelligence · Computer Science 2022-01-19 Zizhao Zhang , Yifei Zhao , Guangda Huzhang

Predicting customer future purchases and lifetime value is a key metrics for managing marketing campaigns and optimizing marketing spend. This task is specifically challenging when the relationships between the customer and the firm are of…

Machine Learning · Computer Science 2021-02-12 Ziv Pollak

Predicting future consumer behaviour is one of the most challenging problems for large scale retail firms. Accurate prediction of consumer purchase pattern enables better inventory planning and efficient personalized marketing strategies.…

Machine Learning · Computer Science 2020-10-15 Ankur Verma

As retailers around the world increase efforts in developing targeted marketing campaigns for different audiences, predicting accurately which customers are most likely to churn ahead of time is crucial for marketing teams in order to…

Machine Learning · Statistics 2023-04-04 Juan Pablo Equihua , Henrik Nordmark , Maged Ali , Berthold Lausen

Accurate predictions of customers' future lifetime value (LTV) given their attributes and past purchase behavior enables a more customer-centric marketing strategy. Marketers can segment customers into various buckets based on the predicted…

Applications · Statistics 2019-12-18 Xiaojing Wang , Tianqi Liu , Jingang Miao

Customer Lifetime Value (CLV) is an important metric that measures the total value a customer will bring to a business over their lifetime. The Beta Geometric Negative Binomial Distribution (BGNBD) and Gamma Gamma Distribution are two…

Applications · Statistics 2025-01-10 Sagarnil Das

We describe the Customer LifeTime Value (CLTV) prediction system deployed at ASOS.com, a global online fashion retailer. CLTV prediction is an important problem in e-commerce where an accurate estimate of future value allows retailers to…

Machine Learning · Computer Science 2017-09-26 Benjamin Paul Chamberlain , Angelo Cardoso , C. H. Bryan Liu , Roberto Pagliari , Marc Peter Deisenroth

Accurately predicting customer Lifetime Value (LTV) is crucial for companies to optimize their revenue strategies. Traditional deep learning models for LTV prediction are effective but typically provide only point estimates and fail to…

Machine Learning · Computer Science 2024-11-26 Xinzhe Cao , Yadong Xu , Xiaofeng Yang

The value of raw data is unlocked by converting it into information and knowledge that drives decision-making. Machine Learning (ML) algorithms are capable of analysing large datasets and making accurate predictions. Market segmentation,…

Machine Learning · Statistics 2023-08-29 Diego Vallarino

This study in the banking industry examines the influence of attitudinal loyalty on customer advocacy and cross buying behavior, alongside the moderating roles of Quality of Life and Corporate Social Responsibility support in the CSR fit…

General Economics · Economics 2024-04-18 Muhamad Bhayuta Yudhi Putera , Melia Famiola

A potential objective of every financial organization is to retain existing customers and attain new prospective customers for long-term. The economic behaviour of customer and the nature of the organization are controlled by a prescribed…

Computers and Society · Computer Science 2015-04-09 Md. Rafiqul Islam , Md. Ahsan Habib

The paper outlines a framework for autonomous control of a CRM (customer relationship management) system. First, it explores how a modified version of the widely accepted Recency-Frequency-Monetary Value system of metrics can be used to…

Machine Learning · Computer Science 2015-04-09 Yegor Tkachenko

In today's competitive financial landscape, understanding and anticipating customer goals is crucial for institutions to deliver a personalized and optimized user experience. This has given rise to the problem of accurately predicting…

Statistical Finance · Quantitative Finance 2024-07-01 Andrew Estornell , Stylianos Loukas Vasileiou , William Yeoh , Daniel Borrajo , Rui Silva

Continuous value prediction plays a crucial role in industrial-scale recommendation systems, including tasks such as predicting users' watch-time and estimating the gross merchandise value (GMV) in e-commerce transactions. However, it…

Information Retrieval · Computer Science 2026-02-27 Runpeng Cui , Zhipeng Sun , Chi Lu , Peng Jiang

We present a Bayesian framework for estimating the customer lifetime value (CLV) and the customer equity (CE) based on the purchasing behavior deducible from the market surveys on customer purchasing behavior. The proposed framework…

Applications · Statistics 2014-08-12 Juha Karvanen , Ari Rantanen , Lasse Luoma

Customer Lifetime Value (CLTV) prediction is a critical task in business applications. Accurately predicting CLTV is challenging in real-world business scenarios, as the distribution of CLTV is complex and mutable. Firstly, there is a large…

Information Retrieval · Computer Science 2024-08-19 Yunpeng Weng , Xing Tang , Zhenhao Xu , Fuyuan Lyu , Dugang Liu , Zexu Sun , Xiuqiang He
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