Calculate basic CLV

You are now ready to calculate average customer lifetime with three different methods! In this exercise you will calculate the basic CLV which multiplies average monthly spent with the projected customer lifespan.

The pandas and numpy libraries have been loaded as pd as np respectively. The online dataset has been imported for you.

This exercise is part of the course

Machine Learning for Marketing in Python

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Exercise instructions

Group by CustomerID and calculate monthly spend per customer.
Calculate average monthly spend.
Define lifespan to 36 months.
Calculate basic CLV by multiplying monthly average spend with the lifespan.

Hands-on interactive exercise

Have a go at this exercise by completing this sample code.

# Calculate monthly spend per customer
monthly_revenue = online.___(['___','InvoiceMonth'])['TotalSum'].___()

# Calculate average monthly spend
monthly_revenue = np.___(monthly_revenue)

# Define lifespan to 36 months
lifespan_months = ___

# Calculate basic CLV
clv_basic = ___ * lifespan_months

# Print the basic CLV value
print('Average basic CLV is {:.1f} USD'.format(clv_basic))

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