Tools for Customer Lifetime Value Estimation
Description
Probabilistic latent customer attrition models (also known as "buy-'til-you-die models") are used to
predict future purchase behavior of customers. This package includes fast and accurate implementations of various
probabilistic latent customer attrition models for non-contractual settings (e.g., retail business) with and
without time-invariant and time-varying covariates. Currently, the package includes the Pareto/NBD model
(Pareto/Negative-Binomial-Distribution), the BG/NBD mode (Beta-Gamma/Negative-Binomial-Distribution) and the GGom/NBD
(Gamma-Gompertz/Negative-Binomial-Distribution) for the purchase and the attrition processes as well as the Gamma/Gamma model
for the spending process. For reference to the Pareto/NBD model, see Schmittlein DC, Morrison DG, Colombo R (1987) ,
for the BG/NBD model, see Fader PS, Hardie BG, Lee K (2005) and for the GGom/NBD model see Bemmaor AC, Glady N (2012)
. For reference to the Gamma/Gamma model, see Fader PS, Hardie BG, Lee K (2005) .