Skip to content
  • For Marketing
    • AI Personas and Behavioral Segmentation
    • Campaign Recommendations
    • Lead Scores
    • Churn Prevention with “At Risk”
    • Lifetime Customer Value (LCV)
  • For Sales
    • AI Personas and Behavioral Segmentation
    • Lifetime Customer Value (LCV)
    • Lead Scores
    • Churn Prevention with “At Risk”
  • Platform Products
    • AI Development
    • AI Personas and Behavioral Segmentation
    • Campaign Recommendations
    • Lead Scores
    • Lifetime Customer Value (LCV)
    • Churn Prevention with “At Risk”
  • Blog
  • Resources
    • Api Documentation
    • Glossary
    • Getting Started Wizard
    • Videos
    • Privacy Statement
    • Terms and Conditions
Menu
  • For Marketing
    • AI Personas and Behavioral Segmentation
    • Campaign Recommendations
    • Lead Scores
    • Churn Prevention with “At Risk”
    • Lifetime Customer Value (LCV)
  • For Sales
    • AI Personas and Behavioral Segmentation
    • Lifetime Customer Value (LCV)
    • Lead Scores
    • Churn Prevention with “At Risk”
  • Platform Products
    • AI Development
    • AI Personas and Behavioral Segmentation
    • Campaign Recommendations
    • Lead Scores
    • Lifetime Customer Value (LCV)
    • Churn Prevention with “At Risk”
  • Blog
  • Resources
    • Api Documentation
    • Glossary
    • Getting Started Wizard
    • Videos
    • Privacy Statement
    • Terms and Conditions

Lifetime Customer Value (LCV)

  • Dan Baird
  • July 22, 2022

Lifetime Customer Value

Goal

Provide a score for each existing customer that takes into account purchase history. The score incorporates purchase data that takes into account both historical purchases and forecasted purchases. This amalgamation of historical and future value to the business enables marketing teams to focus resources on customers that have the greatest revenue potential.

Deliverables

  • Individual-level LCV labels (i.e., high, medium, low)
  • Individual level diagnostic categories (e.g., total spend, recency, average spend, number of transactions, loyalty span, etc.)

Primary Source Data

  • Transaction data (minimum with primary key)
  • Customer/Contact bio/profile/descriptions
  • Transaction data is not necessary once a model has been trained and scored using transaction data. Subsequent LCV scoring can be done with match scores and profile data (e.g., sex, age, zipcode, tel prefix, email domain, etc.)

Required Scores

  • Brand/product match scores

Steps

  1. ETL: date to integer
  2. record-level transaction arrays
  3. record-level regression
  4. extract spend summary values:
  • max spend
  • total spend
  • number of transactions
  1. extract date summary values:
  • earliest transaction date
  • most recent transaction date
  • span of transaction dates (i.e., number of days)
  • number of days between ‘today’ and most recent transaction date

Transformations for customers with <2 transactions

  • future spend
  • recency
  • spend total
  • spend maximum
Previous
Next
Share the Post:

Related Posts

Use Case: Easily Create a 1-to-Many Campaign

If you are looking to create a 1-to-many campaign for a go-to-market (GTM) or marketing-based promotional campaign, you can easily

Read More
AI will create more jobs

Re-Post: ARTIFICIAL INTELLIGENCE WILL ELIMINATE JOBS – AND CREATE THEM

Despite fears of AI causing extensive job displacement, we’re optimistic that AI will serve as a valuable tool to augment many professions, rather than eradicating them. We hope you enjoy this revisited piece, and as always, we welcome your thoughts and engagement

Read More

Want to learn more?

Wrench.ai uses predictive analytics to transform your customer data into actionable insights that provide deeper personalization and engagement to your campaigns.

The personalization platform driving acquisition, growth, and engagement.

Twitter Linkedin
Info
  • Privacy Policy
  • Terms
  • API documentation
  • Getting Started Guide
  • Videos
Quick Links
  • For Marketing
    • AI Personas and Behavioral Segmentation
    • Campaign Recommendations
    • Lead Scores
    • Churn Prevention with “At Risk”
    • Lifetime Customer Value (LCV)
  • For Sales
    • AI Personas and Behavioral Segmentation
    • Lifetime Customer Value (LCV)
    • Lead Scores
    • Churn Prevention with “At Risk”
  • Platform Products
    • AI Development
    • AI Personas and Behavioral Segmentation
    • Campaign Recommendations
    • Lead Scores
    • Lifetime Customer Value (LCV)
    • Churn Prevention with “At Risk”
  • Blog
  • Resources
    • Api Documentation
    • Glossary
    • Getting Started Wizard
    • Videos
    • Privacy Statement
    • Terms and Conditions
Menu
  • For Marketing
    • AI Personas and Behavioral Segmentation
    • Campaign Recommendations
    • Lead Scores
    • Churn Prevention with “At Risk”
    • Lifetime Customer Value (LCV)
  • For Sales
    • AI Personas and Behavioral Segmentation
    • Lifetime Customer Value (LCV)
    • Lead Scores
    • Churn Prevention with “At Risk”
  • Platform Products
    • AI Development
    • AI Personas and Behavioral Segmentation
    • Campaign Recommendations
    • Lead Scores
    • Lifetime Customer Value (LCV)
    • Churn Prevention with “At Risk”
  • Blog
  • Resources
    • Api Documentation
    • Glossary
    • Getting Started Wizard
    • Videos
    • Privacy Statement
    • Terms and Conditions
Get In Touch
  • Email: info@wrench.ai.com
  • Phone: 415-766-0778
  • Hours: Mon-Fri 9:00AM - 5:00PM

© All Rights Reserved.