A Bayesian Approach to Buy-Till-You-Die and Customer Lifetime Value Models

Speaker: Mick Cooney

In this talk, we will be discussing the basic concept of Buy-Till-You-Die models, used to analyse customer transaction frequency and lifetime in a non-contractual setting. BTYD models are used in areas such as online retail, investments and similar situations.

We discuss the use of a Bayesian approach to building these models, issues arising from this and how we can use the outputs of those models to characterise and segment our customers.

We also discuss the use of modelling transaction amounts and how we can use tools like Stan to combine multiple models together.

Thanks once again to Dogpatch for their generous hosting of our events.