Building RFM model on customer purchase behavior to estimate Customer Life Time Value (CLV)

  1. RFM Models which is based on Recency, Frequency, and Monetary.
  2. Probability Models that is based on Pareto/NBD model and Markov chains.
  3. Econometric Models like probability model is based on Pareto/NBD model.
  4. customer acquisition, customer retention, and customer margin and expansion.
  5. Persistence Models is Based on modeling the behavior of its components, that is, acquisition, retention, and cross-selling
  6. Computer Science Models which is based on theory (e.g., utility theory) and are easy to interpret.
Online Retail shopping data set of customers
Data table of RFM score
Table showing centroid of the clusters
Table showing centroids of the clusters

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