Problem Statement

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

Solution Summary

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

  1. Segment 1 Preferences: Road Bikes, Above $3000 (Premium Models)

  2. Segment 2 Preferences: Mountain Bikes, Above $3000 (Premium Models)

  3. Segment 3 Preferences: Road Bikes, Below $3000 (Economical Models)

  4. Segment 4 Preferences: Both Road and Mountain, Below $3000 (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 exposes 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: Road Bikes, Above $3000 (Premium Models)

  2. Segment 2 Preferences: Mountain Bikes, Above $3000 (Premium Models)

  3. Segment 3 Preferences: Road Bikes, Below $3000 (Economical Models)

  4. Segment 4 Preferences: Both Road and Mountain, Below $3000 (Economical Models)