Predictive CLV Modeling

Description

Predictive Customer Lifetime Value (CLV) predicts the value a customer relationship will bring to an organization over the entire relationship. CLV is defined as the present value of future net cash flows associated with an individual customer's buying behavior.

We utilize the latest models from research literature to predict future CLV for each individual customer, allowing us to segment customers according to their predicted future value.

Value

Revenue forecasting: Offers a forward looking estimate of a customer's total value, enabling accurate revenue forecasting.

Resource Optimization: Powerful tool to guide businesses in efficiently allocating resources towards acquiring and retaining high-value customers.

Tailored marketing: By understanding the potential value of different customer cohorts, businesses can design more personal marketing strategies.

Churn Predictions: Predictive insights allow companies to identify and engage customers at risk of churn, enhancing customer retention.


Applied in

•  Non-contractual business models (B2C & B2B)

•  Subscription business models (B2C & B2B)

Example Ouputs

Example of actual predictions we have made for a client: Conditional Expectations – Given how many transactions a customer made in the estimation period, how many did they make in the holdout period
Example of actual predictions we have made for a client: Conditional Expectations – Given how many transactions a customer made in the estimation period, how many did they make in the holdout period
Revenue Forecast: Cohort level forecasts can be used to perform more accurate revenue forecast
Revenue Forecast: Cohort level forecasts can be used to perform more accurate revenue forecast

Implementation Process

Lay the foundation for growth by understanding future customer value today

Reach Out