[Resource] 8 Methods to calculate CLV:

There are lot of ways to apply a CLV (customer lifetime value) model. But I hadn’t seen a single document that would summarize all of them — Until I saw this: http://srepho.github.io/CLV/CLV

If you are building a CLV model, one of first things that you might want to figure out is whether you have a contractual model or non-contractual model. And then figure out which methodology would work best for you. Here are 8 methods that were summarized in the link that I shared with you:

Contractual

• Naive

• Recency Frequency Monetary (RFM) Summaries

• Markov Chains

• Hazard Functions

• Survival Regression

• Supervised Machine Learning using Random Forest

Non-Contractual

• Management Heuristics

• Distribution Based Approaches

Hope that helps!