I have data on customer purchase history. I want to score each of these customers based on the attributes. For this, I want to calculate the score by assigning weights to variables, (ex: 10% to v1, 20% to v2, 50% to v3 etc.,) and then sum up these weights. The resultant score should tell me how good a customer is. For instance, a score above 500 means they are good/loyal customers and we can expect good sales from them next time. While the threshold can be decided once we get a score, I want to know how I can approach this problem. I decided to run PCA, from which I can get the PCA scores and hence use coefficients as weights. For example, if I select the first principal component and take the coefficients, y1=0.5v1+0.8v2-0.2v3 , replacing v1, v2 , v3 with the values of the attributes, I can get a score of each observation. I am not sure if this is a clever approach. Is there a better way to optimize the weights and calculate the score of each customer? Any thoughts are appreciated.
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