Cohort Analysis - Customer Lifetime Value with Survival Curve

Objective

Calculating CLV for Each Cohort with survival rate data

**CLV = Average Customer Lifetime * ARPU = sum(Survival Rate through Ti * ARPU)**

Get Data for Survival Curve

Data Source

Data Requirement

• Unique ID
• Start Time
• End Time
• Event Status: e.g. Cancelled, Quit, Died, etc.

Run Survival Curve

Export Survival Rate Data

Calculate Expected Revenue for Each Period

Assume ARPU (Average Revenue Per User) = 100

mutate(`Expected Revenue` = `Survival Rate`*100)

Summarize the Revenue to Calculate CLV

Reference

Online Seminar #44 - Cohort Analysis Part 3 - Customer Life Time Value with Survival Curve https://exploratory.io/note/kanaugust/Online-Seminar-44-Cohort-Analysis-Part-3-Customer-Life-Time-Value-with-Survival-Curve-UpT9seS5BP

Calculating Customer Lifetime Value (CLV) in 3 Ways — Guts, Churn Rates, Survival Rates https://blog.exploratory.io/calculating-customer-lifetime-value-clv-in-3-ways-guts-churn-rates-survival-rates-1c8b92c19687