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:
Predicted pobability of purchase
Predicted number of orders
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:
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:
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:
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
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:
After you select this attribute you can choose which value tier to use for this audience.
