Retail Case Study

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CASE STUDY:

CUSTOMER ANALYSIS FOR RETAIL

Website: www.analytixlabs.co.in
Email: [email protected]

Bldg-41, 14th Main Road, GF - SCO-382, Sector 29,


Sector 7,HSR Layout, Adj to IFFCO Chowk Metro Station,
(Near Mc Donald’s and Opp to Max Store), Besides Magic Pin,
Bengaluru, Karnataka. Gurgaon, Haryana.

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AnalytixLabs, Website: www.analytixlabs.co.in Email: [email protected]: (+91) 955.521.9007


ANALYTICS IN RETAIL:
With the retail market getting more and more competitive by the day, there has never been
anything more important than the ability for optimizing service business processes when
trying to satisfy the expectations of customers. Channelizing and managing data with the
aim of working in favor of the customer as well as generating profits is very significant for
survival.

Ideally, a retailer’s customer data reflects the company’s success in reaching and nurturing
its customers. Retailers built reports summarizing customer behavior using metrics such as
conversion rate, average order value, recency of purchase and total amount spent in recent
transactions. These measurements provided general insight into the behavioral tendencies
of customers.

Customer intelligence is the practice of determining and delivering data-driven insights into
past and predicted future customer behavior.To be effective, customer intelligence must
combine raw transactional and behavioral data to generate derived measures.

In a nutshell, for big retail players all over the world, data analytics is applied more these
days at all stages of the retail process – taking track of popular products that are emerging,
doing forecasts of sales and future demand via predictive simulation, optimizing placements
of products and offers through heat-mapping of customers and many others.

DATA AVAILABILITY:
 Retail Data.xlsx
o This book has three sheets (Customer, Transaction, Product Heirarchy)
o Customer: Customers information including demographics
o Transaction: Transactions of customers
o Product Heirarchy: Product information (cateogry, sub category etc...)

BUSINESS PROBLEM:
A Retail store is required to analyze the day-to-day transactions and keep a track of its customers
spread across various locations along with their purchases/returns across various categories.

Create a report and display the below calculated metrics, reports and inferences.

1. Merge the datasets Customers, Product Hierarchy and Transactions as Customer_Final. Ensure to
keep all customers who have done transactions with us and select the join type accordingly.

2. Prepare a summary report for the merged data set.

a. Get the column names and their corresponding data types

b. Top/Bottom 10 observations

AnalytixLabs, Website: www.analytixlabs.co.in Email: [email protected]: (+91) 955.521.9007


c. “Five-number summary” for continuous variables (min, Q1, median, Q3 and max)

d. Frequency tables for all the categorical variables

3. Generate histograms for all continuous variables and frequency bars for categorical variables.

4. Calculate the following information using the merged dataset :

a. Time period of the available transaction data

b. Count of transactions where the total amount of transaction was negative

5. Analyze which product categories are more popular among females vs male customers.

6. Which City code has the maximum customers and what was the percentage of customers from
that city?

7. Which store type sells the maximum products by value and by quantity?

8. What was the total amount earned from the "Electronics" and "Clothing" categories from
Flagship Stores?

9. What was the total amount earned from "Male" customers under the "Electronics" category?

10. How many customers have more than 10 unique transactions, after removing all transactions
which have any negative amounts?

11. For all customers aged between 25 - 35, find out:

a. What was the total amount spent for “Electronics” and “Books” product categories?

b. What was the total amount spent by these customers between 1st Jan, 2014 to 1st Mar, 2014?

AnalytixLabs, Website: www.analytixlabs.co.in Email: [email protected]: (+91) 955.521.9007

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