The transactional approach to business and marketing leads most managers to focus on the wrong thing - the next transaction. So they become fixated with marketing mix and core products. Performance is then measured by metrics such as conversion rate, cost per acquisition, sales growth, or market share, and they forget what matters most: the customer. In fact, there is nothing more important, nothing more fundamental to our business than a long-term relationship with our high-value customers. So marketing becomes an interaction aimed at building, maintaining and improving those relationships. And at the heart of customer relationship lies Customer Lifetime Value (CLV). In this tutorial, we'll learn how to forecast CLV in a non-contractual setting based on RFM-Analysis and first-order Markov chain.