Emotional Drivers, Customer Retention and Lifetime Value
How to investigate potential associations between emotional experience and observed business outcomes.
Overview
Retention and lifetime value are observed business metrics. Model-generated emotional indicators can help formulate hypotheses about loyalty and preference, but they cannot establish a measured effect by themselves.
Key considerations
Track customer cohorts, renewal, churn, product usage, support and revenue. Use comparable measurement periods and control for external factors before drawing conclusions about predictive value.
Practical application
To assess predictive performance, use longitudinal data, a predefined sample, baseline comparisons and out-of-sample validation. Report uncertainty and limitations.
Limitations
Correlation does not imply causation. Numerical performance claims require an auditable study with an appropriate baseline.