In reference to Gamma Gamma spend model, is this in any way related to Pareto/NBD, BG/NBD or BG/BB model?

datascience.stackexchange https://datascience.stackexchange.com/questions/37869

  •  31-10-2019
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Question

The reason I ask this question is as follows:

  • I am currently in a remote intern position.
  • I've been asked to calculate the Customer lifetime value (past + future) for each customer based on monthly cohorts.
  • I can choose from P/NBD, BG/NBD or BG/BB model whatever is appropriate.

I came across the Gamma-Gamma spend model. Is this in any way associated with the above models? How?

According to this (https://segment.com/docs/guides/warehouses/how-do-i-forecast-ltv-with-sql-and-excel-for-e-commerce/), they just use average transaction value for each customer and multiply by expected conditional transactions. Is this a sufficient approach by changing individual averages to monthly cohort averages?

No correct solution

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