Covariates in PYMC-Marketing CLV Model

Questions v5
1

I tried using a categorical variable in a Pareto NBD CLV model. Do covariates have to be continuous?

2

Hey @zweli,

What kind of results did you get out of curiosity? Categorical variables are uncharted territory for this particular model, but should work fine if encoded properly. Be mindful of the dummy variable trap:

3

The results were not great … because, I now realize, I stupidly used label encoding. Which makes no sense. So, I am going to dummy encode and rerun. Report back here after.

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