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Add Hierarchical Support to CLV Models #1404

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ColtAllen opened this issue Jan 18, 2025 · 0 comments
Open

Add Hierarchical Support to CLV Models #1404

ColtAllen opened this issue Jan 18, 2025 · 0 comments
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CLV enhancement New feature or request

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@ColtAllen
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The CLV retail transaction models (BG/NBD, MG/NBD, Pareto/NBD, and BG/BB) have strong population assumptions that may be violated in a hierarchical framework based on purchasing behavior (i.e., RFM segments), but could still work fine for geographical regions.

The GG spend model, on the other hand, works very well when fit to individual RFM segments. A hierarchical framework would allow information-sharing between these segments and be very useful if some segments have limited data.

@ColtAllen ColtAllen added CLV enhancement New feature or request labels Jan 18, 2025
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