A New Approach to Proportional Hazards Modeling for Estimating Customer Lifetime Value

2022/08/03 by Pliner, Vadim
#Applications (stat.AP) #FOS: Computer and information sciences

paper · doi:10.48550/arxiv.2208.01832

Abstract

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 takes advantage of a churn model, which is assumed to be available.

Related

• Potential Customer Lifetime Value in Financial Institutions: The Usage Of Open Banking Data to Improve CLV Estimation
• Modelling customer lifetime-value in the retail banking industry
• Calculating Customer Lifetime Value and Churn using Beta Geometric Negative Binomial and Gamma-Gamma Distribution in a NFT based setting
• A Deep Probabilistic Model for Customer Lifetime Value Prediction
• Including individual Customer Lifetime Value and competing risks in tree-based lapse management strategies