Decoding Customer Lifetime Value to Unlock Business Success with Predictive Machine Learning Approach

This study highlights how crucial customers are for a company's success who directly impacts revenue and overall business value. This study focuses on analysis of customer lifetime value, the research uses data from 5000 customers with 8 important features with the main goal of predicting customer lifetime value. Business leaders often face choices about where to invest in marketing, like loyalty programs, incentives and ads or nothing. The study suggests that customer lifetime value is a key metric for making smart decisions, which measures how much a customer spends over their time with a company. To predict this value, the research explored different machine learning models - linear regression, decision tree regressor, random forest, and AutoML regressor. Each model is checked for how well it predicts customer spending habits. The results show that AutoML regression stands out for its accuracy without overcomplicating things. This study offers insights for businesses looking to improve their customer-focused strategies and long-term success.