Don't remove outliers before reading this!

📢 Don’t remove outliers before reading this!

🔸 Your top client? Probably an outlier.
🔸 Your best-selling product? Likely an outlier too.
🔸 That viral post? Yep, an outlier!

👑 The top of anything often stands out. This is called the "King’s Effect," where key successes break the mold. When you remove outliers, you might be cutting out your biggest wins without realizing it.

That's not what you want to do is it?
So how should you deal with outliers?

Here are some ideas:

1️⃣ Use robust statistics
Choose stats less affected by outliers, like the median or robust regression methods. This keeps your analysis steady without dropping valuable data.

2️⃣ Transform observations
Try transformations, like logarithms, to align the data better, or winsorize outliers only to preserve their impact.

3️⃣ Study outliers separately
Build models for your typical cases, but study outliers individually. After all, they are your biggest clients, so why not treat them like VIPs? Qualitative research and active listening go a long way in understanding how top clients think and what kind of value you can provide them.

🎯 Before you remove outliers, make sure they are truly errors or anomalies. Often, outliers hold significant importance. Instead of discarding them, consider how to address them or study them separately.