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Understanding customer lifetime value is key to nurturing long-term customer relationships, however, estimating it is far from straightforward. In the retail banking industry, commonly used approaches rely on simple heuristics and do not…

Machine Learning · Computer Science 2023-04-07 Greig Cowan , Salvatore Mercuri , Raad Khraishi

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

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…

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

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

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

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

Accurate customer lifetime value (LTV) prediction can help service providers optimize their marketing policies in customer-centric applications. However, the heavy sparsity of consumption events and the interference of data variance and…

Information Retrieval · Computer Science 2023-06-27 Chuhan Wu , Jingjie Li , Qinglin Jia , Hong Zhu , Yuan Fang , Ruiming Tang

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

Predicting customers' long-term revenue from sparse and irregular transaction data is central to marketing resource allocation in non-contractual settings, yet existing approaches face a trade-off. Traditional probabilistic customer base…

Machine Learning · Statistics 2026-04-27 Jeffrey Näf , Riana Valera Mbelson , Markus Meierer

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

Many modern commercial sites employ recommender systems to propose relevant content to users. While most systems are focused on maximizing the immediate gain (clicks, purchases or ratings), a better notion of success would be the lifetime…

Machine Learning · Statistics 2017-02-24 Assaf Hallak , Yishay Mansour , Elad Yom-Tov

Model-based reinforcement learning (RL) methods are appealing in the offline setting because they allow an agent to reason about the consequences of actions without interacting with the environment. Prior methods learn a 1-step dynamics…

Machine Learning · Computer Science 2022-11-07 Bogdan Mazoure , Benjamin Eysenbach , Ofir Nachum , Jonathan Tompson

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

Existing recommendation algorithms mostly focus on optimizing traditional recommendation measures, such as the accuracy of rating prediction in terms of RMSE or the quality of top-$k$ recommendation lists in terms of precision, recall, MAP,…

Information Retrieval · Computer Science 2019-02-05 Changhua Pei , Xinru Yang , Qing Cui , Xiao Lin , Fei Sun , Peng Jiang , Wenwu Ou , Yongfeng Zhang

Recommender system plays a crucial role in modern E-commerce platform. Due to the lack of historical interactions between users and items, cold-start recommendation is a challenging problem. In order to alleviate the cold-start issue, most…

Information Retrieval · Computer Science 2021-08-23 Luo Ji , Qin Qi , Bingqing Han , Hongxia Yang

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

Supply and demand are two fundamental concepts of sellers and customers. Predicting demand accurately is critical for organizations in order to be able to make plans. In this paper, we propose a new approach for demand prediction on an…

Machine Learning · Computer Science 2022-11-03 Resul Tugay , Sule Gunduz Oguducu

Quantifying the value of data is a fundamental problem in machine learning. Data valuation has multiple important use cases: (1) building insights about the learning task, (2) domain adaptation, (3) corrupted sample discovery, and (4)…

Machine Learning · Computer Science 2019-09-27 Jinsung Yoon , Sercan O. Arik , Tomas Pfister

Customer Lifetime Value (LTV) prediction, a central problem in modern marketing, is characterized by a unique zero-inflated and long-tail data distribution. This distribution presents two fundamental challenges: (1) the vast majority of…

Machine Learning · Computer Science 2026-01-27 Mingyu Zhao , Haoran Bai , Yu Tian , Bing Zhu , Hengliang Luo
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