NAME: KSHITIJ SRIVASTAVA (G19070)

BID Exam

The above plot shows that 5 number of clusters should be formed

Now analyzing the Data:

Cluster 5: Total no of Customers in basket: 900

These are the customers who are not very recent. Also most of them are low revenue customer with
very low mean purchase, as reflected in the screenshot below
Cluster 4: Total no of Customers in basket: 3

This cluster can be called as “Milking Cow”. Since it has huge revenue generation with mean purchase
being very recent, which can be seen from the data below. It also has very high frequency of purchase.

But what should be taken into consideration before taking final decision to strategize is – this group has
cluster of only 3 CID. Which means these customers are the bulk customers who bought recently. SO
more time should be given before finaliszing

Cluster 3: Total no of Customers in basket: 509

This can be called as potential customer – since it has high frequency and also are very recent
customers. But yet to tapped. This cluster so far has low revenue generation

Cluster 2: Total no of Customers in basket: 36

Customer base with high revenue generation with limited customer base(36) with high frequency and
very recent
Cluster 1: Total no of Customers in basket: 2840