Victoria Solution – Consulting Group’s Intern

Week 3 Project

1. Cleaning Dataset:

1.1. Initial Inspection and Data Cleanup:

  • First impression, the dataset looks clean, no missing value, no messy format. 
  • Select all -> Data-> Data clean up -> trim the white spaces. 
  • Repeat step -> Data -> Data Clean Up-> remove duplicates. 

1.2. Data Type Formatting:

  • Check schemas and see two columns related: total spend and frequency purchases. -> adding two new columns: one named Customer Lifetime Value, another one is ROI – Return Of Investment. 
  • At the first row of the dataset, at the first cell of the column “Customer Lifetime Value”, enter the formula = total_spend * frequency_purchases. 
  • At the first row of dataset and at the first cell of column “ ROI” , enter the formula = roundup(((total_spend – marketing_ spend)/ total_spend)*100,1)
  •  Next, drag out the results from the first row of both columns. 

  • Then, Formatting columns Total_spend, marketing_spend, customer_ Lifetime_Value as the currency; Formatting the column ROI by percentage. 

 

  • Condition Formatting of the column “Customer Lifetime Value “ -> Condition: greater and/or equal to the formula average of all cells from the column “Customer Lifetime Value “ -> add-on color Formatting when the conditions are met. 

1.3. Export: The cleaned dataset was exported as a CSV file.

1.4 Cleaned dataset sample:

Customer_IDCustomer_NameRegionTotal_SalesPurchase_FrequencyCustomer Lifetime ValueMarketing_SpendROI by percentageSeasonality_IndexChurned
101John DoeNorth5000126000020001501.2No
102Jane SmithSouth300082400015001001Yes
103Sam BrownEast4500104500018001501.1No
104Linda JohnsonWest250051250010001500.9Yes
105Michael LeeNorth70001510500025001801.3No
106Emily DavisSouth32007224001400128.61Yes
107David WilsonEast530014742002300130.51.2No
108Susan WhiteWest29006174001100163.70.8Yes
109Chris MartinNorth600013780002200172.81.2No
110Anna TaylorSouth31008248001350129.70.9Yes
111James AndersonEast470011517001900147.41.1No
112Patricia ThomasWest26005130001050147.70.8Yes
113Robert JacksonNorth5500126600021001621.2No
114Mary HarrisSouth33009297001450127.61Yes
115Daniel ClarkEast4900115390020001451.1No
116Barbara LewisWest27006162001150134.80.9Yes

2. Insights:

Short Summary:

  • Total sales across region = $ 66200
  • Total marketing spend = $ 26800
  • Customer Acquisition Cost = $ 1675
  • Median frequency of purchase is 9 months 2 weeks long.

2.1 Regions Situation:

  • The North region exhibits the highest average ($5,875) with the frequency purchase of 13 months long -> as result, the customer lifetime value reaches $77,250.
  • Conversely, the South and West regions show comparatively lower average

2.2 Customer Retention:

  • Both the North and East regions exhibit a 0% churn rate, indicating high customer satisfaction and retention.
  • In stark contrast, the South and West regions both demonstrate a 100% churn rate, highlighting significant customer retention challenges.

2.3 ROI Situation

  • The North region has the highest ROI of 166.15%
  • The West region also has a lower average ROI of 149% and the lowest average marketing spend $1,075.
  • The South region has the lowest average ROI of 121.45% and lowest marketing spend $1,425 -> suggesting that current marketing efforts may be less effective or insufficient in this region.

3. Visualizations:

3.1 Current Customer Retention Situation

3.2 Current ROI by Region

3.3 Current Pattern

3.4 Current CLV – Customer Lifetime Value

3.5 Current Situation of 3 Variants: Total Spend, Marketing Spend and ROI


Recommendations

Deeper the current situation analyzing

-> focus on business domains:

  • Business Capability
  • Current Inventory
  • Marketing Budget and Strategy

Making the forecast based on the historical data as the baseline reference point:

Forecasting Customers Retention

Forecasting Marketing Spend

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