Customer Lifetime Value and Its Application in Retail Analytics

Customer Lifetime Value (CLV) is a relatively new framework stemming from the idea of “treatment of customers as an asset”, in use at innovative companies like Harrah’s, IBM, and Capital One. The definition is a fairly natural one: CLV is the net present value of profit from all the future purchases a customer is going to … More Customer Lifetime Value and Its Application in Retail Analytics

A Note on Shopping Efficiency and Product Placement

Most of us have heard of this little puzzle in retail analytics: Assuming we know products A and B are usually purchased together from market basket analysis, how do we place them on shelves to maximise sales? The often-stated “sophisticated” answer is that A and B should be placed far away from each other because … More A Note on Shopping Efficiency and Product Placement