Lifetime Value Tutorial - Creating a Template

Creating a Lifetime Value Template

The Lifetime Value model allows you to use your own data directly or to use a pre-formatted template.

Because the Lifetime Value model requires a specific data format, users with their own data should review the pre-formatted template to become familiar with the appropriate structure.

The Templates feature can be found on the Enginius Dashboard in the left column.

After selecting the Lifetime Value template from the dropdown, you will be presented with the following dialog box to set up the template according to your data needs:

The template generation allows you to specify the model analysis specific to your study, as detailed below:

Segments

• Number of segments: Creates a segment data block with the number of segments to which a customer can belong. 
• Include next-period costs: Provides a column in the segment data block where you can enter how much money the company plans to spend per customer during the next period, according to the segment to which this customer belongs at the beginning of the period. Typically, active customers are followed more closely, receive more attention (e.g., direct marketing solicitations, sales representative visits), and cost more to the firm.
• Set last segment as absorbing state: This option will consider the last segment as a lost customer. Once a customer enters this segment, he will remain in this segment with no chance to return to another segment. This option will affect the resulting transition matrix data block.

Acquisition

• Include customer acquisition scenario: Creates an additional data block where you can enter new customers gained (e.g., customers that were not part of your original segments) in each segment during each forthcoming period.
• Include acquisition costs (only available if “Include customer acquisition scenario” is selected): Provides an additional column in the segment data block to enter the cost for obtaining a new customer in that segment.
• Number of periods specified (only available if “Include customer acquisition scenario” is selected): The number of periods to include in your customer acquisition scenario block. This will allow you to set a different number of new customers acquired for each upcoming period.
  
  

Note: the check box at the bottom of the dialog box will cause the template to populate with sample (random) data that will allow you to run Lifetime Value  immediately so you can preview the output produced. 

After selecting the desired model options, click  to generate the data collection template.