Customer Analysis for Retail Store

This project involved performing a comprehensive customer analysis for a retail store operating in the fashion industry. The main objective was to gain a deep understanding of customer purchasing behaviors, segment customers based on their characteristics, and extract valuable insights to drive business growth and customer retention strategies.

Data cleaning and preprocessing

Exploratory data analysis

Statistical modeling and hypothesis testing

Customer segmentation using RFM analysis

Data visualization

Insight generation and business recommendations

The analysis was conducted using transactional data from the retail store, including order details, customer information, payment types, and sales channels. The data spanned a period of four years, from 2016 to 2020, providing a longitudinal view of customer interactions.

The project followed a structured approach, which included the following steps:

Cleaned and transformed the transactional data, handling missing values and ensuring data consistency.

Merged data from multiple sources, such as order details and channel information.

Converted data types and performed data quality checks.

Analyzed variables like order dates, sales channels, payment types, and customer purchasing statistics.

Visualized data distributions and trends, identifying patterns and potential outliers.

Conducted statistical tests to identify significant relationships and differences.

Employed the RFM (Recency, Frequency, Monetary Value) technique to segment customers based on their purchasing behavior.

Calculated RFM scores for each customer and assigned loyalty segments (Platinum, Gold, Silver, Bronze, Tin).

Analyzed the characteristics and purchasing patterns of each segment.

Analyzed the identified customer segments in terms of sales contribution, order values, and loyalty levels.

Investigated the impact of multi-channel shopping behavior on customer loyalty and profitability.

Derived insights and recommendations for targeted marketing strategies and customer retention initiatives.

Web sales generated 4% higher order values compared to in-store sales.

50% of customers made only one purchase during the analyzed period.

Customers who shopped through both physical stores and online channels were highly profitable, generating 3 times more revenue on average.

The business had a healthy number of loyal customers, with 25% of customers contributing to 60% of total sales.

91% of customers who shopped through both channels were in the platinum or gold loyalty segments.