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Customer Lifetime Value with PyMC Marketing
Customer Lifetime Value (CLV) is a forward-looking approach that allows analysts to estimate the value and profitability of customers. CLV equals the net present value of the future cash flows from a customer. It is used to estimate the value of a customer over the entire relationship with a company. It is used for customer profitability, segmentation, targeting and retention strategies, customer divestment, promotions, advertising, and pricing campaigns.
In this chapter, we will cover the following topics:
- The fundamentals of CLV and why analysts use them
- What’s wrong with the CLV formula
- Beyond the CLV formula
- Implementing the BTYD model with PyMC Marketing
By the end of this chapter, you will ...
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