Problem Statement

Marketing would like to increase email campaign engagement by segmenting the customer-base using their buying habits.

Solution Summary

The Data Science team has identified 4 customer segments. The 4 were given descriptions based on the customer’s top product purchases.

  1. Segment 1 Preferences Mountain Bikes, above $3200 [Premium Models]

  2. Segment 2 Preferences Road Bikes, above $3200 [Premium Models]

  3. Segment 3 Preferences Road Bikes, below $3200 [Economical Models]

  4. Segment 4 Preferences Both Road and Mountain Bikes, below $3200 [Economical Models]

Customer Preferences

Heat Map

Our customer-base consists of 30 bike shops.Several customers have purchasing preferences for Road or Mountain Bikes based on the proportion of bikes purchased by category_1 and category_2.

Customer Segmentation

This is a 2D Projection based on customer similarity that expose 4 clusters, which are key segments in the customer base.

Customer Preferences By Segment

The 4 customer segments were given descriptions based on the customer’s top product purchases.

  1. Segment 1 Preferences Mountain Bikes, above $3200 [Premium Models]

  2. Segment 2 Preferences Road Bikes, above $3200 [Premium Models]

  3. Segment 3 Preferences Road Bikes, below $3200 [Economical Models]

  4. Segment 4 Preferences Both Road and Mountain Bikes, below $3200 [Economical Models]