CLTV is the monetary value that a customer will bring to the company during the relationship and communication with a company.
CLTV prediction:
Probabilistic lifetime value estimation with time projection
CLTV = Expected sales x Expected Average Profit
CLTV = BG-NBD Model X Gamma Gamma
The UK-based retail company wants to set a roadmap for its sales and marketing activities. In order for the company to make a medium-long-term plan, it is necessary to estimate the potential value that existing customers will provide to the company in the future.
Data can be download from: https://archive.ics.uci.edu/ml/datasets/Online+Retail+II
The dataset named Online Retail II includes online sales transactions of a UK-based retail company between 01/12/2010 and 09/12/2011. The company's product catalog includes souvenirs and it is known that most of its customers are wholesalers.
InvoiceNo: Invoice Number (If this code starts with C, it means that the transaction has been cancelled)
StockCode: Product code (unique for each product)
Description: Product name
Quantity: Number of products (How many of the products on the invoices were sold)
InvoiceDate: Invoice date
UnitPrice: Invoice price
CustomerID: Unique customer number
country: country name