Predicted Value Tier

Predicted customer value tiers represent a percentile grouping of customers by predicted customer lifetime value (pCLV). Value tier groupings include:

  • Platinum: top 1% of customers

  • Gold: top 1%-5% of customers

  • Silver: top 5%-10% of customers

  • Bronze: top 10%-25% of customers

  • Medium: top 25%-50% of customers

  • Low: bottom 50% of customers

About predicted CLV attributes

AmpIQ provides a set of attributes that predict customer lifetime value (CLV) during the next 365 days.

Each of these attributes provides a score that is independent of other predicted CLV attributes:

  1. Predicted CLV represents the total value of all orders a customer is predicted to make if they return to make another purchase during the next 365 days.

    Note

    Predicted CLV is the multiplication of three columns: 1) predicted probability of return, 2) predicted order frequency, and 3) predicted average order value.

    Each component of predicted CLV is also available as an individual score:

    1. Predicted probability of transaction represents the likelihood that a customer will return to make another purchase during the next 365 days.

    2. Predicted order frequency represents the number of orders a customer is predicted to make if they return to make another purchase during the next 365 days.

    3. Predicted average order revenue represents the average value of each order a customer is predicted to make if they return to make another purchase during the next 365 days.

  2. Predicted value tiers group customers by pCLV: Platinum (top 1%), Gold (top 1%-5%), Silver (top 5%-10%), Bronze (top 10%-25%), Medium (top 25%-50%), and Low (bottom 50%).

For example:

  1. Start with predicted frequency of transaction to identify customers with a higher likelihood of return, and then identify which of those customers are expected to fall into your top 10%.

  2. Add predicted order frequency to identify which of those customers are the most likely to order more than once if they become a repeat customer.

Use in segments

To find predicted value tiers, start with the Predicted Customer Lifetime Value Tier attribute in the Predicted CLV Attributes table, and then set its condition to is in list. After the attribute appears in your segment, set the list values to include all of the value tiers you want to use in your segment.

Choose the predicted customer lifetime value tier attribute from the Segment Editor.

Choose the is in list attribute, and then set predicted lifetime value tier to Platinum, Gold, and Silver:

The is in list condition for predicted value tier.

Note

Predicted order frequency is available to users of AmpIQ when predictive modeling is enabled for your tenant.

Available conditions

The following table lists the conditions that are available to this attribute.

Note

This attribute has a String data type. All String data types share the same set of conditions. Recommended conditions for this attribute are identified with “ Recommended” and conditions with more limited use cases are identified with “ Not recommended”.

Condition

Description

is

Recommended

is returns customer records that are associated with the specified value tier.

is blank

is blank returns customer records that do not have a value associated with any value tier.

is in list

Recommended

is in list returns customer records that matches the value tier (or value tiers) options that are selected from the list.

For example:

The is in list condition for predicted value tier.

is like

is like returns customer records that are similar to a partial name of a value tier.

is not

Recommended

is not returns customer records that are not associated with the specified value tier.

is not blank

Not recommended

is not blank returns customer records that are associated with any value tier.

is not in list

Not recommended

is not in list returns customer records that are not associated with any value tier in the list.

is not like

Not recommended

is not like returns customer records that are not similar to a partial name of a value tier.

is not NULL

Not recommended

is not NULL returns customer records that have a value.

is NULL

is NULL returns customer records that do not have a value.