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Overview: In this white paper presented in SUGI30 three tractable ways to predict Customer lifetime value are presented. The first way estimates the mean by assuming that the churn hazard eventually levels off. The second and third ways estimate other measures of centrality. Each of the three solutions requires the statistical modeling of the churn hazard and the financial analysis of the revenues and expenses associated with the customers products and services. The future value of a contractual customer depends on the remaining lifetime of products and the path of future cash flows.
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