Problem Statement
Marketing team would like to increase email campaign engagement by segmenting the customer-base using their buying habits.
Solution Summary
The 4 customer segments were identified and given descriptions based on the customer’s top product purchases.
Segment 1 Preferences: Road Bikes, Below $3200 (Economical Models) - 27%
Segment 2 Preferences: Mountain Bikes, Above $3200 (Premium Models) - 10%
Segment 3 Preferences: Road Bikes, Above $3200 (Premium Models) - 20%
Segment 4 Preferences: Both Road and Mountain, Below $3200 (Economical Models) - 43%
Customer Preferences
Heat Map
Our customer-base consists of 30 bike shops. Several customers have purchasing preferences for Road or Mountain Bikes based on the proportion of bikes purchased by category (mountain or road) and sub-category (Over Mountain, Trail, Elite Road, etc).
Customer Segmentation
This is a 2D Projection based on customer similarity that exposes 4 clusters, which are key segments in the customer base.
Customer Preferences By Segment
The 4 customer segments were given descriptions based on the customer’s top product purchases.
Note: The table below is sortable. You can sort a column by clicking on its header.