Folder:
113 Math
File:
113.020.050 Statistics - BTYD models

BTYD Models

History

Buy Till You Die (BTYD) is originally implemented in the insurance industry where customers will literally continue buying the product until they die. They are best for situations where there is a subscription or other contractual setting, not wonderful for retail prediction (1).

BTYD models are based on 108.30.10.20.20.10 Data Analysis - Segments - RFM
- Recency (R)
- Frequency (F)
- Number of people for each combination of R/F - the raw data needs to be aggregated into the groupings of R/F groups)

Models

Models in the BTYD family are:
- 113.020.050.10 BTYD - BGBB
- 113.020.050.20 BTYD - BG NBD
- 113.020.050.30 BTYD - Pareto NBD

Code

There are multiple libraries that implement the BTYD models. This is just one of them

https://rdrr.io/cran/BTYD/man/BTYD-package.html

References:
- 1: Eric Bradlow wrote a paper re. how to look at the data and decide if BTYD will work or not. (could find this if interesting)


Source:
  • Me