International Coffee Chain designed a robust engagement strategy utilizing customer lifetime value and Churn Prediction to influence Customer behaviour.
Customer Lifetime Value indicates the future potential of a customer. The lifetime for every customer is usually the period that the customer continues to shop. In case of quick service restaurants, the customer can visit the store after long interval of time hence the lifetime of customer is considered as 1 year. The CLV model predicts the potential revenue that the customer can generate in the next 12 months. The customers were split into 3 groups based on the revenue generated by them.