Identifying Customers with the Highest Profitability Potential
Red Hat had accumulated a significant dataset related to the selling methods of their solutions, as well as customer communication strategies, and customer profiles. Leveraging this data, we developed an algorithm for customer segmentation to identify the customers with the highest profitability potential and determine effective methods to communicate with them.
Industry:
Information Technologies
Region:
USA
Technologies:
Python
Volume:
0.1 man/year
Challenge
Despite a large pool of potential customers showing interest in its services, Red Hat's profits primarily stemmed from a relatively small number of loyal customers. The challenge was to swiftly identify customers with the potential for significant profitability, allowing the company to prioritize and focus on them right from the initial interaction.
Solution
The only way to achieve this goal was to conduct extensive data analysis, enabling the formulation of criteria to identify high-profile clients and determine the most effective communication strategies with them.
