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Customer Lifetime Value for Subscription Products

Customer Lifetime Value for Subscription Products

Estimating Customer Lifetime Value allows you to say how much you can spend on customer acquisition and retention. This is especially important for subscription-based products like games, online services, information marketing, loyalty programes etc. In this article we will use a classical approach to estimate CLV with a simple equation and customer cohort analysis. There are more […]

Linear Regression vs Logistic Regression vs Poisson Regression

Linear Regression vs Logistic Regression vs Poisson Regression

Generalized Linear Models (GLMs) extend the ordinary Linear Regression and allow the response variable y to have an error distribution other than the normal distribution. GLMs are great because: They are easy to understand. Most statistical packages contain functions to fit and interpret the resulting model. Linear regression or logistic regression is sufficient for a lot […]

impulse response function

Modelling responses to market shocks

One of the frequently asked questions by marketers is what shall we expect from any market turbulences. This can be an increase in competitors’ spend on advertising, beginning of pricing war or any outlier of current market conditions. Let us address this issue on an example of a competitors high discount price using impulse response […]