A predictive customer lifetime value model uses data to forecast the amount of revenue or profit a customer will generate over the course of his or her relationship with your business. Standard approaches to lifetime value rely entirely on historical data to segment customers into groups based on past spending or behavior; a predictive model, on the other hand, will tell you how much an individual customer is likely to spend on your business in the long term.
With granular, customer-level information about profit or revenue, you can tailor marketing materials, develop targeted campaigns, and customize sales pitches to customers who are more likely to be valuable to your business. Push the model's outputs directly into the systems and tools that are used by your sales, customer service, and marketing teams for optimized decision making.
The DataScience.com Lifetime Value Playbook is a comprehensive repository of instructional content and code designed to help your data science team build a lifetime value model or level up the capabilities of an existing one. Created by our internal team of experienced data scientists, the Lifetime Value Playbook includes code libraries, notebooks, and more that have been curated to help teams of every level effectively identify the most valuable customers.