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Case: Technology Client - Sells Laptops Desktops Tablets Servers Etc
Case: Technology Client - Sells Laptops Desktops Tablets Servers Etc
Note: Above data is just for example, there is no relation between clusters and the data. It just for explanation.
cluster 1 has more high chance of taking subscription
cluster 2 has second most chance of taking subscription
cluster 3 has least chance of taking subscription
So what I want to point out here is
It can be possible that my 1000 customers might have come from cluster 1 only then in this case I will not look for cluster 2 and 3 customers
as I got my most profitable customers within cluster1.
if not then It might possible that I get 300 customers from cluster1 and 700 from cluster 2 so and so forth….
Case: Technology Client – Sells laptops desktops tablets servers etc.
How it will benefit to the Business?
Assuming that I have get 30% customers in cluster 1 then I can select top 1000 customers whom I want to target for
Marketing offer. This can be done by calculating profits and then giving them a ranking from highest to lowest.
Example:
Total
revenue Total cost
earned incurred
in last 24 in last 24
Cluster1 months months Profit Rank
1 1000 200 800 1
2 900 100 800 2
3 800 100 700 3
4 700 200 500 5
5 750 100 650 4
Note: Ranking based on profits (without weights). Above data is just for explanation.
Conclusion:
Once I select my most profitable customers, further I can drill down to calculate
Future expected revenue for next 12 months
Future expected cost for next 12 months