Search code examples
rsurvival-analysiscox-regressionsurvival

Predict customer lifetime values with Cox PH survival analysis

I want to predict the customer lifetime value for each client while many clients are still active, hence right censored data.

I'm using the survival library for my censored data. I then run the coxph model to fit the training data and obtain the survival probabilities with:

predict(cox, newdata = df_survival, type = 'survival')

Since I'm interested in the customer lifetime value I want to transform these survival probabilities to lifetime values. Is there a way to obtain lifetime values from the results of fitting the Cox PH model?

Thanks!

Solution

  • Cox proportional hazards models can't give you an estimate of survival time, but parametric survival models can. Choosing the correct model takes some knowledge of the shape of your dataset. See this thread and Applied Survival Analysis (chapter 8)