Decay is Key for Customer Return Timing, New Test Confirms

Sang Su Lee, Vineeth Loganathan, Shishir Dash, Vijay Raghavan· August 13, 2026 View original

Key takeaways

  • A new protocol rigorously certifies the value of signals in customer-return timing models.
  • Continuous-time decay is highly effective and often sufficient for predicting customer returns.
  • Many additional conditioning signals provide negligible or even negative benefits.
  • Focusing on core temporal dynamics can lead to simpler, yet more accurate, models.

Who benefits

E-commerceRetailSubscription ServicesMarketingCustomer Relationship Management

Summary

This research introduces a screen-and-confirm protocol to rigorously test if additional signals improve customer-return timing models. It finds that continuous-time decay is nearly sufficient for predicting return timing, with most added conditioning signals providing negligible or even harmful benefits.

In the realm of customer-return modeling, practitioners often enrich temporal-point-process (TPP) models with numerous signals like lifetime value, category, or recency. However, it's often unclear whether these additional covariates genuinely improve the prediction of event timing. This paper addresses this by providing a credible method to certify the utility of such signals. The first contribution is a "screen-and-confirm" protocol. This method involves planting a positive control (a signal of known strength) to ensure the model can detect it, thereby validating that a subsequent "null" result on real data truly means "no signal" rather than a weak detection method. This protocol was validated on various data types and a real-world dataset. The second key finding is a model-free ceiling on predictability: customer return timing is largely near-memoryless, with only a single-digit percentage of gap variance explained by covariates. Applying their protocol to several public benchmarks and a real marketplace, the researchers certified that continuous-time decay (inter-event clock) is almost entirely sufficient for predicting return timing. Most additional conditioning signals were found to be statistically null or even mildly harmful, suggesting that complexity often adds little value beyond simple decay.

Why it matters

Marketing and product professionals can optimize customer retention strategies by focusing on the most impactful signals for return timing, avoiding unnecessary model complexity, and ensuring resource allocation to truly effective interventions.

How to implement this in your domain

  1. 1Apply the screen-and-confirm protocol to validate the efficacy of new features in your customer behavior models.
  2. 2Prioritize continuous-time decay as a primary feature in models predicting customer return timing.
  3. 3Re-evaluate existing complex customer-return models to identify and remove redundant or ineffective conditioning signals.
  4. 4Communicate the limited predictability of customer return timing to stakeholders to set realistic expectations for model performance.

Original post by Sang Su Lee, Vineeth Loganathan, Shishir Dash, Vijay Raghavan

"arXiv:2608.11555v1 Announce Type: new Abstract: Practitioners enrich customer-return models with ever more signals (lifetime value, category, recency/frequency, calendar, geography), and the temporal-point-process (TPP) literature follows suit with covariate- and external-covaria…"

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Originally posted by Sang Su Lee, Vineeth Loganathan, Shishir Dash, Vijay Raghavan on X · view source

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