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Exercise

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.

Instructions

100 XP
  • 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.