Maven Reward Challenge

Information regarding this project

Objective of the Project:

The aim is to pinpoint crucial customer segments and create a data-oriented approach for future promotional messaging and targeting.

Overview of the Data: The dataset comprises three files:

• Customers: Customer ID, date, age, income

• Events: Customer ID, event, hours since start, value

• Offers: Offer ID, offer type, difficulty, reward, duration, and channel

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Key Findings: The analysis is categorized into three main sections:

1. Which offers exhibited the highest conversion rates? Examination of the offer data indicates that discounts outperformed BOGO (Buy One Get One) in terms of conversion rates. The choice of channels for these offers also played a role in boosting conversion rates.

   
   

2. What are the primary customer segments based on age, income, and conversion rate? Baby Boomers emerge as the most significant customer segment based on age and income, followed by Gen X, while Gen Z represents the smallest group. The income brackets of $60-75k and $45-60k annually together constitute approximately 50% of the customer base.

   
   

3. What are the key customer segments based on purchase value, frequency, and recency? An RFM (Recency, Frequency, Monetary) analysis was carried out to classify customers based on their purchasing behavior. The RFM analysis aided in segmenting customers into high, mid, and low-value categories. Only 20% of customers fall into the high-value group, characterized by frequent purchases and high spending. Around 40% are low-value customers, but their view rate exceeds 89%, indicating an opportunity to enhance their purchase frequency through targeted discounts and free product offers.

   • Recency: Days since the last purchase

   • Frequency: Total number of purchases

   • Monetary Value: Total amount spent by the customer

     
     

Insights on Channels: Social media stands out as a top-performing channel for driving conversions. However, incorporating a mix of channels could further enhance overall conversion rates.

Primary Focus on Three Key Customer Segments:

1. Boomers (Ages 57-75):

   • Income: $45-60k or $60-75k

   • Gender: Female/Male

   • Preferred Channels: Email/Web (high view rate)

   • Preferred Offer Type: Discount

     
     

2. Gen X (Ages 44-56):

   • Income: $45-60k or $60-75k

   • Gender: Female/Male

   • Preferred Channels: Email/Web (high view rate)

   • Preferred Offer Type: Discount

     
     

3. Millennials (Ages 26-43):

   • Income: $30-45k

   • Gender: Female/Male

   • Preferred Channels: Social Media (second-highest view rate after Gen Z)

   • Preferred Offer Type: Discount