Wrong monetary value - Githubissues

pymc-labs / pymc-marketing

Bayesian marketing toolbox in PyMC. Media Mix (MMM), customer lifetime value (CLV), buy-till-you-die (BTYD) models and more.

https://www.pymc-marketing.io/

Apache License 2.0

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Wrong monetary value #466

Closed s4935324 closed 9 months ago

s4935324 commented 10 months ago

Monetary value disregards the first purchase value. I though that this how it supposed to work, but in documentation it is mentioned that the denominator of the monetary value calculation will differ from the frequency number, implying the the first purchase value and count is included in calculation. Am I understanding it wrong?

ricardoV94 commented 10 months ago

Can you link / copy-paste the text in question?

ColtAllen commented 9 months ago

I believe @s4935324 is referring to this section of the CLV Quickstart, which was copy/pasted from lifetimes. This alternate definition of monetary value should clear things up:

monetary_value represents the average value of a given customer’s repeat purchases. Customers who have only made a single purchase have monetary values of zero.

I'll need to expand this further once support for RFM Segmentation is added.