Customer Segmentation and Analysis for UK based all-occasion gifts retail company
Problem Statement: Customer Segmentation and analysis for a retail company.
Understanding consumer behavior helps businesses better sell products and provide services. Market researchers often use consumer segmentation as a tool to analyze various groups of consumers. A segment is a group of customers (present or potential) with similar characteristics. Marketers then use those characteristics to create a target market for their product or service. Once a firm has effectively “segmented” the market, it must choose to “target” one or more closely related segments in which it can focus its marketing efforts on.
Integrated marketing agencies usually prioritize segments based on a combination of factors including sales, loyalty, profitability, as well as other strategic considerations. Without the ability to track and analyze your decisions as well as your customers’ purchases and behaviors, your business risks falling behind.
This notebook includes :
- Data Visualization and Analysis
- Customer Segmentation using RFM Method
- Analysis of product description for a particular segment of customers (example of segments : best customers, loyal customers, lost customers, etc.)
- Word Cloud for words in Product Description after cleaning (removing unnecessay words or stop words)