# Predicting Customer Lifetime Value Using Recurrent Neural Net

arXiv: https://arxiv.org/abs/2412.20295 · HTML: https://mlsanity.com/paper/2412.20295/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 3 of its 8 references that are in the map.
- First posted on arXiv 28 Dec 2024.

## Builds on (most cited first, 3 of 3)

- [Deep Residual Learning for Image Recognition](https://mlsanity.com/paper/1512.03385/) (2015)
- [Learning Phrase Representations using RNN Encoder-Decoder for Statistical Machine Translation](https://mlsanity.com/paper/1406.1078/) (2014)
- [ES-dRNN: A Hybrid Exponential Smoothing and Dilated Recurrent Neural Network Model for Short-Term Load Forecasting](https://mlsanity.com/paper/2112.02663/) (2021)

## Abstract (arXiv)

This paper introduces a recurrent neural network approach for predicting user lifetime value in Software as a Service (SaaS) applications. The approach accounts for three connected time dimensions. These dimensions are the user cohort (the date the user joined), user age-in-system (the time since the user joined the service) and the calendar date the user is an age-in-system (i.e., contemporaneous information).The recurrent neural networks use a multi-cell architecture, where each cell resembles a long short-term memory neural network. The approach is applied to predicting both acquisition (new users) and rolling (existing user) lifetime values for a variety of time horizons. It is found to significantly improve median absolute percent error versus light gradient boost models and Buy Until You Die models.