Definition #
ML estimating total revenue from customer relationships.
Key Characteristics #
- Cohort analysis
- Discount rate
- Survival models
- Scenario
Why It Matters #
Improves CAC payback by 40% (ProfitWell).
Common Use Cases #
- Budget allocation
- Loyalty
- Acquisition
Examples #
- RFMpro
- Optimove
- VWO
FAQs #
Q: Time horizon?
A: 3-year predictions with monthly updates.
Q: B2B vs B2C?
A: Separate models for contract vs transactional.