1
$\begingroup$

I have a dataset of customer contracts that specify a start date and if applicable an end date. Each month a customer is up for renewal. Below is an example of how the data is organized in excel:

ID   Customer Start Date   Customer Drop Date
1    Jan. 2018             Dec. 2018
2    Feb. 2018             July 2018
3    Mar. 2018             

Using the above example, I'm trying to predict whether customer 3 will drop in Jan. 2019, Feb. 2019, Mar. 2019, etc.. Essentially I'm trying to calculate the probability that a customer that's still active will renew their contract for a given month after Dec. 2018. What is the remaining life-time value?

Should I graph the the length of all historic contracts and see what distribution they match? If so how would I apply the distribution to the open contracts?

New contributor
Geometric is a new contributor to this site. Take care in asking for clarification, commenting, and answering. Check out our Code of Conduct.
$\endgroup$

Your Answer

Geometric is a new contributor. Be nice, and check out our Code of Conduct.

By clicking "Post Your Answer", you acknowledge that you have read our updated terms of service, privacy policy and cookie policy, and that your continued use of the website is subject to these policies.

Browse other questions tagged or ask your own question.