A deep-dive into BG-NBD, an influential hierarchical model that facilitates a understanding of customers’ purchase behavior — Importance of customer lifetime value Customer lifetime value (CLV) is the total worth of a customer to a company over the length of his relationship. In practice, this “worth” can be defined as revenue, profit, or other metrics of an analyst’s choosing. CLV is an important metric to track for two reasons. First, the totality…