Average lifetime value of a customer
Question
Given the following dataset, calculate the average lifetime value of a customer.
Below are a couple of definitions to help solve the problem:
- Lifetime value is average revenue divided by the churn rate
- Churn rate is defined as the total number of churned customers / total number of customers
Additionally, here is code to import the relevant packages as well as the dataset shown above, to help get you started:
#Importing packages
import pandas as pd
import numpy as np
#Read in the dataset
data = pd.read_csv("https://raw.githubusercontent.com/erood/interviewqs.com_code_snippets/master/Datasets/teleco_user_data.csv")
#Convert these column types to int
data['TotalCharges'] = pd.to_numeric(data.TotalCharges, downcast='integer', errors='coerce')
data['MonthlyCharges'] = pd.to_numeric(data.MonthlyCharges, downcast='integer', errors='coerce')