Calculate Customer Lifetime Value for Spokeo Using Models

Q: Calculate Customer Lifetime Value for Spokeo Using Models

This question evaluates competency in customer lifetime value (CLV) modeling, including specification of required data, formulation of churn and discount-rate assumptions, selection between subscription cohort and non-contractual transaction models, and segmentation for mixed subscription and one‑off monetization.

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Question

Estimate Customer Lifetime Value (CLV) for Spokeo

Context

Spokeo monetizes via consumer subscriptions and possibly one‑off purchases. You are asked to design a practical method to estimate Customer Lifetime Value (CLV) that the team can implement and validate.

Task

Describe:

The data you would require.
The key assumptions (e.g., churn definition, discount rate, margin).
A modeling approach: either a subscription retention/cohort model or a non‑contractual transaction model (e.g., Pareto/NBD + Gamma‑Gamma), and when to use each.
How you would validate the CLV estimates.

Be sure to discuss churn, discount rate, and segmentation.

Calculate Customer Lifetime Value for Spokeo Using Models

Estimate Customer Lifetime Value (CLV) for Spokeo

Context

Task

Solution

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