Problem Statement

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

Solution Summary

In data science I have identified 4 customer segments:

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

  1. Segment 1 Preferences: Road Bike, Below $3200 (Economical Models)

  2. Segment 2 Preferences Mountian Bikes, Above $3200 (Premium Models)

  3. Segment 3 Preferences Road Bikes. Above $3200 (Primium Models)

  4. Segemnt 4 Prefreances Both Road and Mountian, Below $3200 (Economical)

Customer Preferences

Heat Map

Customer-base consists of 30 bike shops. Several customers have purchasing preference for Road or Mountain Bikes based on the proportions of bikes purchased by category_1 and category_2

Customer Segmentation

RATIO ANALYSIS AND HEAT MAP

Customer Preferences By Segment

The 4 customer clusters were given descriptions based on the customer’s top product purchases. K_Means Cluster Analysis

  1. Cluster 1 Preferences Road Bike, Below $3200 (Economical Models)

  2. Cluster 2 Preferences Mountian Bikes, Above $3200 (Premium Models)

  3. Cluster 3 Preferences Road Bikes. Above $3200 (Primium Models)

  4. Cluster 4 Prefreances Both Road and Mountian, Below $3200 (Economical)

Note the statistical outliers from the cluster groups