Problem Statement
Marketing would like to increase email campaign engagement by segmenting the customer-base using their buying habbits.
Solution Summary
A heat map and cluster analysis extract and display key business insights from the data about bikes purchased at 30 bike shops across the US. The crucial insight is provided at the end in the Customer Preferences section.
Customer Preferences
Heat Map
Our customer base consists of 30 bike shops. Elite Road is a popular purchase for many of them. Endurance Road and Cross Country Race are also fairly popular.
Customer Segmentation
This is a 2D projection based on customer similarity that reveals 4 clusters of unique bikeshop preferences.
Customer Preferences By Segment
Cluster 1 customers prefer mountain bikes that range from $2,000 to $8,000 (mostly premium product range).
Cluster 2 customers prefer road bikes that primarily range from $2,700 to about $12,000 (mostly premium product range).
Cluster 3 customers also prefer road bikes that range from $1,000 to $4,000 (mostly economic product range).
Cluster 4 customers like both mountain ($500 to $3,200 price range—economy) and road bikes ($900 to $3,200 price range—also economy).