CLTV PREDICTION WITH BG-NBD AND GAMMA-GAMMA

####TIME PROJECTION PROBABORATIVE LIFETIME VALUE ESTIMATION

1-Data Preparation

2-Expected Number of Transaction with 2-BG-NBD Model

3-Expected Average Profit with 3-Gamma-Gamma Model

4-Calculation of CLTV with 4-BG-NBD and Gamma-Gamma Model

5-Creating Segments According to CLTV

6-Functionalization of the work

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CUSTOMER LIFETIME VALUE

1-Data Preparation

2-Average Order Value (average_order_value = total_price / total_transaction)

3-Purchase Frequency (total_transaction / total_number_of_customers)

4-Repeat Rate & Churn Rate (number of customers who made multiple purchases / all customers)

5-Profit Margin (profit_margin = total_price * 0.10)

6-Customer Value (customer_value = average_order_value * purchase_frequency)

7-Customer Lifetime Value (CLTV = (customer_value / churn_rate) x profit_margin)

8-Creation of Segments

9-BONUS: Functionalization of All Transactions

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CUSTOMER SEGMENTATION WITH RFM

1-Business Problem

2-Data Understanding

3-Data Preparation

4-Calculating RFM Metrics

5-Calculating RFM Scores

6-Creating and Analyzing RFM Segments

7-Functionalization of the Entire Process