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Predicted LTV Too High

See original GitHub issue

Hi Cameron,

Thanks for creating this great library!

I’m having a few problems with the values predicted using customer_lifetime_value( ).

I would expect the LTV to be a slightly discounted version of the predicted purchases * average order value, but as shown in the screen shot below it’s actually coming out much higher:

Screenshot 2019-08-26 at 12 59 19

In one example, a customer who has only spent $180 over 2 years is predicted to have a 12 month value of $2670.

Is there an error somewhere in the calulate being caused by the fix for Issue #180?



Issue Analytics

  • State:open
  • Created 4 years ago
  • Comments:5

github_iconTop GitHub Comments

orenshkcommented, Aug 28, 2019

what’s the correlation between frequency and monetary value in your dataset?

ColtAllencommented, Nov 11, 2022

I’ve a good idea of what’s causing this, which I’ve summed up here and will be working on in the btyd successor library.

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