Predicted CLV Model

Predicted customer lifetime value 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.

Amperity models predicted CLV by comparing what customers spent in the previous year to their predicted spend in the coming year, and then determines for each customer their:

  1. Predicted pobability of purchase

  2. Predicted number of orders

  3. Predicted average order value

Use predicted CLV modeling to build high-value audiences that identify:

  • Which customers have the highest predicted value?

  • Which customers will respond better to special offers and perks?

  • What are the best personalized experiences for your best customers?

  • Which customers have individual price preferences?

Use cases

The predicted CLV model helps you identify your highest value customers by year or by value tier:

  1. How much will customers spend in the next year?

  2. Which customers are your most valuable customers?

How much will customers spend?

The Predicted CLV Next 365d attribute in the Predicted CLV Attributes table contains the total predicted customer spend over the next 365 days. You can access this attribute directly from the segment editor:

Choose the predicted CLV attribute from the Segment Editor.

After you select this attribute you can specify the type of values you want to use for this audience, such as:

  • Predicted value is greater than $100

  • Predicted value is less than $400

  • Predicted value is between $100 and $400

Which customers are the most valuable?

Predicted CLV modeling sorts customers into the following value tiers:

  1. Platinum: top 1% of customers

  2. Gold: top 1%-5% of customers

  3. Silver: top 5%-10% of customers

  4. Bronze: top 10%-25% of customers

  5. Medium: top 25%-50% of customers

  6. Low: bottom 50% of customers

Use the Predicted Customer Lifetime Value Tier attribute in the Predicted CLV Attributes table to add customers to audiences by value tier. You can access this attribute directly from the segment editor:

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

After you select this attribute you can choose which value tier to use for this audience.