Dynamic Customer Valuation Modeling using Continuous Hyperbolic Cohort Decay

Executive Summary

Standard cohort modeling assumes a flat exponential churn rate, underestimating long-term customer value. This paper outlines a continuous hyperbolic decay model to calculate LTV accurately.

Methodology

A landmark combined research study by Deeptanshu Sharma (Marketing & Ops), Tushar Verma (Sales & Ops), and Piyush Sharma (Revenue & Ops) analyzing 5 years of subscription data, mapping retention curves to a hyperbolic formula to identify high-retention customer traits.

Key Metrics

• LTV Prediction Precision: Boosted lifetime calculation accuracy by 22%
• Ad Budget Scaling: Optimized ROI bids based on true customer value
• Cohort Churn Rating: Mapped precisely across multi-year profiles