2. Problem & Our Approach
Problem: Declining revenues and customer loyalty. Find
the best strategy to increase revenue from current
customers and retain them.
Our Approach: Analyzed data in SPSS and visualized in
Tableau to understand the difference of each loyalty
segment.
3. Limitations & Assumptions
• No gender information
• Only provided average spending
• Only one product (record) per customer
• No cost data
• Sales/Products could be seasonal
• Assume that conversion rate for a single channel is same for all
segments
• We don’t know physical store locations
• Based on current customer segments. Could be different.
4. Key Findings
Total Spending Avg spending/customerNumber of customer
• Silver has the most customers, smallest basket.
• Gold has the least customers, largest basket.
9. Marketing Campaign
• Run 3 outbound campaigns to get the
highest conversion rate through different
channels
• Direct mails on gold customers for two
weeks
• Run inbound marketing (Web & POS) to
support outbound messages (direct mail,
mobile apps, social network)
• Focus on specific product marketing for
Electronic (Gold and Silver) and Books
(Silver and Bronze)
11. • Evolving industry
– Are the old segments still valid?
• Provided Limited data
– There may be other legitimate factors
Time to Re-segment?
12. Methodology
• Use XL Miner to transform variables
– Missing data
– Dummies
– 1 Bin
– Results in 21 segmentation variables
• Run the segmentation with ME XL