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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

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

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

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

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

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

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 (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

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

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

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

For a successful business, engaging in an effective campaign is a key task for marketers. Most previous studies used various mathematical models to segment customers without considering the correlation between customer segmentation and a…

Information Retrieval · Computer Science 2020-10-26 Kunal Sawarkar , Sanket Jain

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

OHLC bar data is a widely used format for representing financial asset prices over time due to its balance of simplicity and informativeness. Bloomberg has recently introduced a new bar data product that includes additional timing…

Statistical Finance · Quantitative Finance 2025-09-22 Ruslan Tepelyan

In this paper, we introduce a novel predict-and-optimize method for profit-driven churn prevention. We frame the task of targeting customers for a retention campaign as a regret minimization problem. The main objective is to leverage…

Machine Learning · Computer Science 2023-12-19 Nuria Gómez-Vargas , Sebastián Maldonado , Carla Vairetti

Effective control of credit risk is a key link in the steady operation of commercial banks. This paper is mainly based on the customer information dataset of a foreign commercial bank in Kaggle, and we use LightGBM algorithm to build a…

Machine Learning · Computer Science 2023-08-21 Yanjie Sun , Zhike Gong , Quan Shi , Lin Chen

We present a novel approach for the bank's decision problem, incorporating Limited Liability in the objective function. Accordingly, we consider continuous time models, with and without Limited Liability. We compare the solutions of these…

Risk Management · Quantitative Finance 2025-07-23 Deb Narayan Barik , Siddhartha P. Chakrabarty

There is an abundance of temporal and non-temporal data in banking (and other industries), but such temporal activity data can not be used directly with classical machine learning models. In this work, we perform extensive feature…

Machine Learning · Computer Science 2016-09-09 Sandra Mitrović , Gaurav Singh

The connected vehicle (CV) data could potentially revolutionize the traffic monitoring landscape as a new source of CV data that are collected exclusively from original equipment manufactures (OEMs) have emerged in the commercial market in…

Networking and Internet Architecture · Computer Science 2022-09-29 Zijia Zhong , Liuhui Zhao , Branislav Dimitrijevic , Dejan Besenski , Joyoung Lee
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