bgbb.rf.matrix.DERT {BTYD} | R Documentation |
Computes the number of discounted expected residual transactions by a customer, conditional on their behavior in the calibration period.
bgbb.rf.matrix.DERT(params, rf.matrix, d)
params |
BG/BB parameters - a vector with alpha, beta, gamma, and delta, in that order. Alpha and beta are unobserved parameters for the beta-Bernoulli transaction process. Gamma and delta are unobserved parameters for the beta-geometric dropout process. |
rf.matrix |
recency-frequency matrix. It must contain columns for frequency ("x"), recency ("t.x"), number of transaction opportunities in the calibration period ("n.cal"), and the number of customers with this combination of recency, frequency and transaction opportunities in the calibration period ("custs"). Note that recency must be the time between the start of the calibration period and the customer's last transaction, not the time between the customer's last transaction and the end of the calibration period. |
d |
discount rate. |
The present value of the expected future transaction stream for a particular customer.
Fader, Peter S., Bruce G.S. Hardie, and Jen Shang. "Customer-Base Analysis in a Discrete-Time Noncontractual Setting." Marketing Science 29(6), pp. 1086-1108. 2010. INFORMS. Web. See equation 14.
data(donationsSummary) rf.matrix <- donationsSummary$rf.matrix # donationsSummary$rf.matrix already has appropriate column names # starting-point parameters startingparams <- c(1, 1, 0.5, 3) # estimated parameters est.params <- bgbb.EstimateParameters(rf.matrix, startingparams) # compute DERT for a customer from every row in rf.matrix, # discounted at 10%. bgbb.rf.matrix.DERT(est.params, rf.matrix, d = 0.1)