Forecasting Customer Life Cycle and Value in Retail Industry Using Ensemble of Predictive Models

Abstract

Retail is one industry where the customer s needs and behaviour is newlinediverse and keeps changing with time. The same strategy and action that worked for newlineone may not work for all the others and in fact may not even work for the same newlinecustomer at a different time period. It is also a large scale and highly competitive newlinefield with a complex market presence making it costlier to acquire new customers or newlinereacquire former customers than it is to strategize and invest in engaging the existing newlinecustomers. Therefore, retailers invest a large sum in creating pleasant and engaging newlineshopping experiences that attract customers and keep them coming back. While it is newlinenecessary to devise better retention strategies, it is more critical to target the right newlinebase of customers at the right time to strike a balance in the ratio of cost to revenue newline