Adverse cross-buying customer behavior will decrease a company’s profits between 39% and 88%, according to a Big Data and analytics study conducted by Dr. V. Kumar.
In his study, Kumar found that customer cross-buy is not necessarily profitable for all customers and can adversely impact a company’s bottom line. Across the five companies that Dr. Kumar studied, between 10%-35% of the customers who cross-buy was unprofitable. What’s more, these customers accounted for 39%-88% of profits lost from the respective companies....