Flipkart, the poster child of Indian e-commerce, was an early entrant in the nascent Indian e-commerce market and fast established itself as the leading firm in this space. Flipkart has grown into an online retail giant, valued at over USD 15.2 billion as of 2015. Flipkart had 33,000 people and comprised of over 50 million registered consumers with beyond 10 million daily visits and 8 million shipments every month.
Flipkart has been putting in much effort and emphasis on the use of Analytics in every facet of decision making. The analytics team had over 100 data scientists in 2015. Customer churn is a major concern for Flipkart since it's direct impact on Customer Lifetime Value (CLV). CLV is an important measure to discern customers, which can further help the organization to handle them effectively. The key challenge in computing the lifetime value of customers of e commerce businesses like Flipkart is that the precise life of the client is unknown owing to data truncation, in other words, the real point in time of customer churn, which might not be identified in e-commerce, since there would be no previous communication from the client about the churn. Therefore, traditional models of CLV computation might not be appropriate for e commerce firms such as Flipkart.
PUBLICATION DATE: January 18, 2016 PRODUCT #: IMB555-PDF-ENG
This is just an excerpt. This case is about SALES & MARKETING
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