There are lot of ways to apply a CLV (customer lifetime value) model. But I hadn’t seen a single document that would summarize all of them — Until I saw this: http://srepho.github.io/CLV/CLV
If you are building a CLV model, one of first things that you might want to figure out is whether you have a contractual model or non-contractual model. And then figure out which methodology would work best for you. Here are 8 methods that were summarized in the link that I shared with you:
Contractual
- Naive
- Recency Frequency Monetary (RFM) Summaries
- Markov Chains
- Hazard Functions
- Survival Regression
- Supervised Machine Learning using Random Forest
Non-Contractual
- Management Heuristics
- Distribution Based Approaches
Hope that helps!