By measuring how customers move from one segment to another segment over time, this Enginius module helps predict the lifetime value of a customer based on which segment he or she belongs to today, as well as future sales, or the current value of the entire customer database as a whole.
The lifetime value model can be calibrated with several options, such as the speed at which customers will churn (e.g., immediately -transactional- or at the end of contract period -contractual-). Discount rate can also be applied immediately or after one period.
Customers churn over time, but they are also acquired and replaced. Enginius allows you to run multiple customer acquisition scenarios to simulate the impact of various acquisition strategies on the long-term value of a customer database.