How to use scatter plot graph for decision making

Why?

• We work with users or customers and each of them may require different approach to maximize profit.
• It is very useful when you see their personas according to the metrics you defined. And it is very very useful if it happens automatically by data.
• Scatter plot graph is one of the best way to build that decision making map.

How?

• We need to prepare data with 3 columns like below:

• First column is just for naming units, second one is about quality and the third one is about quantity. Type of metrics can be different but I think quality / quantity combination is very helpful to use.
• Imagine that we have data for 20 units. We could get a scatter plot as below:

• Now we have 4 directions in graph and each of them has different meaning and decision type, as an example:

To the left-top: Customers with low value and high volume. Inefficient group that needs to be increased in average price per purchase metric.

To the left-down: Customers with low value and low volume. Insignificant group that needs to be considered about operational cost to decide if it worths to deal with them or not.

To the right-top: Customers with high value and high volume. Best group that needs special attention.

To the right-down: Customers with high value and low volume. Promising group that needs to be pushed to increase volume.

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