80/20 rule is known as pareto distribution which claims that for many events, roughly 80% of the effects come from 20% of the causes.
Vilfredo Pareto was a late nineteenth-century economist/sociologist who first noted and reported his observation that about 80 percent of wealth was concentrated in about 20 percent of a population. This is the basis for what we now call the Pareto Principle .
The Pareto principle has been applied in a variety of fields ranging from Economics, and Business, to Biology and Criminology, in an attempt to not only explain observations in the field, but also fine…
When considering the customer lifetime value, the most curious things that come to mind are what is the customer lifetime value definition and how about the formula to calculate it?
I have explained in detail the definition and required formulas to calculate customer lifetime value in my previous medium article.
Throughout this article, customer lifetime value example for the calculation will be discussed and customers will be divided into 4 segments according to CLTV value.
Data Set Information:
This Online Retail II data set contains all the transactions occurring for a UK-based and registered, non-store online…
Customer lifetime value is often wondered. What is the customer lifetime value and how to calculate it?
It is no secret that firms treat customers differentially. At the same time that one customer spends 10 minutes to connect to customer service, a “Gold” customer calls the phone is picked up immediately by a friendly voice.
How do firms specify the customers to whom they should give preferential and often personal treatment that obviously costs more money and energy, which customer they should connect with through cheaper channels such as the Internet, and which customer to let go?
Firms use many…
I think GitHub code looks great in medium posts. What’s the easiest way to embed GitHub code to medium post?
First of all, to create a GitHub gist, go to your gists from the upper right corner of the GitHub page.
On gists page, a new page is reached from the plus sign at the top right and the code to be shared is created from here.
One of the efficient customer segmentation of an organization is the segmentation of customers into similar behavioral groups based on their RFM (Recency, Frequency and Monetary) values.
Customer segmentation is one of the efficient methods for managing various customers with different preferences. It is the process of dividing heterogeneous groups of customers into homogeneous groups based on common characteristics and attributes. Customer segmentation increases not only satisfaction but also the expected profit for a company. Various marketing strategies applied in customer segmentation could enhance the value of customers. By meeting customers’ needs, companies maintain long-term relationships with customers. …