How would you determine the top 5% of Flipkart customers to offer a premium service to?

Question

Accepted Answer

Identify top 5% customers by analyzing purchase behavior, frequency, and value to tailor premium services.

Analyze transaction data to calculate total spend per customer over a defined period.
Use RFM (Recency, Frequency, Monetary) analysis to segment customers based on their purchasing behavior.
Identify customers with the highest lifetime value (LTV) to prioritize those who contribute most to revenue.
Consider customer engagement metrics, such as frequency of visits and interactions with the platform.
Utilize clustering techniques to group customers and identify the top segment for premium service offerings.

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