The main purpose of this repository is to model and forecast customer lifetime value (CLTV or CLV) for a company.
The Buy Till You Die (BTYD) class of statistical models is designed to predict the behavioral characteristics of customers.
Customer lifetime value can be defined as the present value of a customer for the company based on projected future cash flows from the customer relationship. CLTV represents the total amount of money spent on the business or products over lifetime of a customer.
In this notebook, I'll try to apply a BTYD model on an online retail dataset to make a 1-year CLTV prediction.
online_retail_II.xlsx: The dataset includes the sales of a UK-based online store between 01/12/2009 - 09/12/2011. The product catalog of this company is mostly souvenirs. It can also be considered as promotional products.