Customer Analytics at Flipkart.Com

Case Solution

Naveen Bhansali, Jitendra Rudravaram, Shailaja Grover, Dinesh Kumar Unnikrishnan
Indian Institute of Management-Bangalore ()

The flagship of Indian e-commerce, Flipkart was an early entry into the burgeoning Indian e-commerce market and quickly established itself as a leader in the field. Flipkart has grown into an online retail giant valued at more than $ 15.2 billion in 2015. Flipkart has sold more than 30 million products from more than 50,000 suppliers in more than 70 categories and has 30 exclusive brand partnerships with an Inaday guarantee in 50 cities and a same day guarantee in 13 cities. Flipkart had 33,000 people and had more than 50 million registered users with more than 10 million daily visits and 8 million monthly shows. Flipkart has put a lot of effort and emphasis on the use of analytics in all aspects of decision making. The analytics team, led by Ravi Vijayaraghavan, employed more than 100 data scientists in 2015. Customer loss is a major concern for Flipkart as it has a direct impact on customer lifetime value (CLV). CLV is an important measure of customer differentiation that can further help the company manage them effectively. The biggest challenge in calculating the lifetime value of customers from ecommerce companies like Flipkart is that the exact lifetime of the customer is unknown due to data truncation, i.e. the actual time of customer churn, which in e-commerce may not be identified as there would be no background. customer communication about attrition. Therefore, traditional CLV calculation models may not be suitable for e-commerce companies such as Flipkart.

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