Customer’s Profitability Discussion

For this discussion, imagine that you have become the manager for the online retail business of a company that sells spices (similar to, e.g., the Spice House).

Your first goal is to better understand the profitability of different customer segments. Your preliminary analysis shows that there are customers who order products frequently but do not contribute anything to the store’s profitability. What are possible reasons for that and what kind of information and analysis would help you gain a better understanding of these customers’ low levels of profitability?

 

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