@techreport{7497c838132a414f82ca5baed3ee4f57,
title = "Modeling Within- and Across-Customer Association in Lifetime Value with Copulas",
abstract = "Recent advances in linking Recency-Frequency-Monetary value (RFM) data to Customer Lifetime Value (CLV) in non-contractual settings rely on the assumption of independence between the transaction and spend processes. We propose to model jointly the inter- and intra-customer dependency between both processes using copulas, hereby accounting for the double correlation within and across customers. Applied to a unique data set of securities' transactions, we nd that modeling both associations enhances the accuracy of CLV predictions, thus improving customer valuation and selection tasks.",
keywords = "Association, Copula, Customer Lifetime Value, Across and Within Customers",
author = "N. Glady and A. Lemmens and C. Croux",
note = "Pagination: 40",
year = "2010",
language = "English",
volume = "2010-103",
series = "CentER Discussion Paper",
publisher = "Econometrics",
type = "WorkingPaper",
institution = "Econometrics",
}