Hi @victor,

The choice between using CLV in the engagement policy or as a predictor in the Adaptive model depends on your specific requirements and goals.

1. Engagement Policy:

   • Use Case: If you have strict eligibility criteria for selecting retention offers based on the customer’s lifetime value, incorporating CLV into the engagement policy is recommended. This ensures that only customers meeting the predefined CLV threshold are considered for specific offers.
   • Benefit: This approach provides a clear and straightforward method to filter and target customers, ensuring compliance with business rules and policies.

2. Adaptive Model Predictor:

   • Use Case: If your goal is to enhance the predictive accuracy of your retention offers, using CLV as a predictor in the Adaptive model is beneficial. This method leverages CLV to predict the likelihood of offer engagement, helping to prioritize offers based on customer behavior and potential value.
   • Benefit: Predictors in Adaptive models can dynamically adjust to new data, improving the model’s performance over time and providing more personalized and effective retention strategies.

Recommendation:

• For strict eligibility criteria: Use CLV in the engagement policy.
• For enhanced predictive accuracy: Use CLV as a predictor in the Adaptive model.

I hope this helps! Please let me know if you have any further questions or if you’d like to discuss your requirements in more detail.

Thanks,

Nanjundan Chinnasamy | Pega Lead Decision Architect | DCS| 1:1 Customer Engagement