Automobile Part

Manufacturer Company's Data

MRA Project
By: Subhadeep Seal
Contents:
• Agenda & Executive Summary of the data
• Problem statement
• Executive Summary
• Data dictionary
• Summary Stats
• Assumptions about data
• Exploratory Analysis & Insights
• Univariate, Bivariate, and multivariate analysis using data visualization
• Weekly, Monthly, Quarterly, Yearly Trends in Sales
• Sales Across different Categories of different features in the given data
• Summarize the inferences from the above analysis
• Customer Segmentation using RFM analysis
• What is RFM and which tool used
• What all parameters used and assumptions made
• Output table head
• Workflow image to be put when KNIME used
• Inferences from RFM Analysis and identified segments
• Who are your best customers?
• Which customers are on the verge of churning?
• Who are your lost customers?
• Who are your loyal customers?
Agenda :

01 02 03 04 05
Agenda & Exploratory RFM analysis for Identification of Recommendations
Executive Summary analysis and customer customers based
of the data insights segmentation on different
parameters
01 Agenda & Executive Summary of the
data
• Problem statement
• About Data (Info, Shape, Summary Stats, your assumptions about data)
Problem Statement:

An automobile parts manufacturing company has been actively

selling products to a diverse range of customers for the past three
years. Despite its growth, the company lacks the in-house expertise
to derive actionable insights from its transaction data. As a result,
they wish to uncover hidden patterns and trends in their customer
transactions. By analyzing this data, the company aims to better
understand customer behavior, improve customer segmentation,
and implement targeted marketing strategies. These insights will
help the company not only enhance customer satisfaction but also
drive revenue growth by offering more personalized and efficient
services.
Executive Summary:
• Data: past 3 years.
• Objective: identify the underlying buying patterns of the customers and recommend
customized marketing strategies for different segments of customers.
• Dataset: 20 columns and 2747 rows,
• Missing values and Duplicate values: None
• Outliers: some columns has few outliers
• The exploratory analysis and insights provide a clear understanding of the data and
highlight the key trends and patterns in sales.
• RFM analysis has been performed to segment the customers into four categories
based on their buying behavior, and customized marketing strategies have been
recommended for each segment.
• The presentation concludes with recommendations for the company to enhance its
customer relationships and drive business growth.
 Data Dictionary

• ORDERNUMBER : Order Number • ORDERDATE : Order Date

• CUSTOMERNAME : customer • COUNTRY : Country customer
• QUANTITYORDERED : Quantity ordered • DAYS_SINCE_LASTORDER : Days_ Since_Lastorder
• PHONE : Phone of the customer • CONTACTLASTNAME : Contact person customer
• PRICEEACH : Price of Each item • STATUS : Status of order like Shipped or not
• ADDRESSLINE1 : Address of customer • CONTACTFIRSTNAME : Contact person customer
• ORDERLINENUMBER : order line • PRODUCTLINE : Product line – CATEGORY
• CITY : City of customer • DEALSIZE : Size of the deal based on Quantity and
Item Price
• SALES : Sales amount
• MSRP : Manufacturer's Suggested Retail Price
• POSTALCODE : Postal Code of customer
• PRODUCTCODE : Code of Product

Numeric columns: ORDERNUMBER, QUANTITYORDERED, PRICEEACH, ORDERLINENUMBER SALES,

DAYS_SINCE_LASTORDER, MSRP.
Assumptions:

The customer segments The marketing strategies

Each row in the data may be defined based on may vary for each customer
The order date and days
represents a unique the purchasing frequency, segment, and the company
since last order columns are
transaction made by a amount spent, and recency may need to personalize
accurately calculated.
customer. of purchases (RFM their marketing efforts
Analysis). accordingly.

The recommendations
The sales column is
The status column indicates provided in the presentation
calculated as the product of
the current status of the are based on the insights
quantity ordered and price
order accurately. gained from the analysis of
each.
the transaction data.
 Statistical Summary of Numerical Columns

Inference :
• The average number of items ordered per sales order is 35, with a standard deviation of 9.76.
• The average price of each item is 101.09, with a standard deviation of 42.04.
• The average sales amount per order is 3553.05, with a standard deviation of 1838.95.
• The average time since the last order is 1757.09 days, with a standard deviation of 819.28.
• The summary statistics do not indicate any red flags or abnormalities that could potentially indicate issues with the
data.
•
02 Exploratory Analysis
& Insights
Univariate, Bivariate, and multivariate analysis using data visualization
• Weekly, Monthly, Quarterly, Yearly Trends in Sales
• Sales Across different Categories of different features in the given data
• Summarize the inferences from the above analysis

Outliers has not been treated.

Bivariate Analysis
 • We can see that there is a dip in the yearly sales.
Yearly Sales • We need to find more information regarding this as its
not a good sign.
 Quarterly Sales
We can see that in the quarter 4 there is high sales as compared to other
quarters.
 • We can see that in the 11th month there is highest
sales.
Monthly Sales • And in 6th month the sales is the lowest.
• Sales is consistent in the first 4 months of the year.
Weekday Sales

• We can see Thursday has the

lowest sales and Sunday has
the highest sales.
• Sales increases from Friday to
Sunday and dips from Monday
to Thursday
 Day Sales
In the stating days of month there is more sales as compared to the end
days.
Multi-Variate
Analysis
 • We can see most of the orders which are on hold belongs to usa,
some orders on hold belong to sweden.
Status, Country & • UK, USA, Spain, Sweden have aprox same number of canceled
orders.
Sales • Spain has most disputes and also most disputes are solved.
Order
Shipped &
Sales
• Usa has most shipped orders.
• Spain and France have aprox
same number of orders.
• Ireland have the least number of
orders shipped.
 • Most people deal parts of classic car as it has the
higher %.
Pivot Table • Parts of motercycles are the most Disputed category.
• Least people deal with Train parts.
Sales & Customer names
 • Most sales: Classic cars
• Least sales: Trains

Sales & Deal Size • Most Deal size: medium

• Least Deal size: large
• Sales of truckandbuses and motercycle are aproxx same
 • Highest sales : USA
Country, Product • Least sales: Ireland
line, Sales • Switzerland deals with Only classic car parts.
 Status, Sales and Deal Size

• No order of large deal type is cancelled it’s a good sign.

• Most shipped parts belong to medium deal size type.
PRODUCT LINE AND SALES
Univariate Analysis
 • We can see that sales data is skewed toward left.

Sales • There are many outliers.

• Most data exist between 1.5k - 3.5k.
 • Outliers are present in the MRSP Data
MRSP • This data is shewed toward left .
QUANTITY
• Outliers are present in the data of Quantity Ordered.
ORDERED
PRICE OF EACH • Price of Each data has money outliers
Dashboard : Sales
INFERENCES

Thursday has the

The yearly sales have Quarter 4 has higher Sales are consistent in
lowest sales, and
dipped, which is not a sales compared to the first 4 months of
Sunday has the
good sign. other quarters. the year.
highest sales.

Spain, USA, UK, and

Sales increase from In the starting days of Most orders on hold
Sweden have
Friday to Sunday and the month, there are belong to the USA,
approximately the
dip from Monday to more sales than the and some belong to
same number of
Thursday. end days. Sweden.
canceled orders.

Spain has the most Classic car parts have

disputes, and most the highest
disputes are solved. percentage of sales.
Recommendation
To capitalize on the high
Businesses should identify
Further investigation is sales in quarter 4, Businesses should focus
the reasons behind the low
necessary to identify the businesses should focus their marketing efforts on
sales in the 6th month and
reasons for the dip in on increasing their Thursdays to improve
work towards addressing
yearly sales. inventory during this sales on this day.
them.
period.

Businesses should
Strategies such as Businesses should monitor
consider offering discounts Efforts should be made to
weekend sales can be canceled orders closely
or promotions during the resolve the orders on hold
employed to increase sales and identify any trends to
start of the month to to prevent revenue loss.
from Friday to Sunday. address them.
increase sales.

Businesses should
Steps should be taken to
consider expanding their
resolve disputes quickly
inventory of classic car
and efficiently to maintain
parts, given their high
customer satisfaction.
sales percentage.
03 Customer Segmentation using RFM analysis
• What is RFM and which tool used
• What all parameters used and assumptions made
• Output table head
• Workflow image to be put when KNIME used
What is RFM ?

• Recency, frequency, monetary

value (RFM) is a marketing
analysis tool used to identify a
firm’s best clients based on the
nature of their spending habits.
• An RFM analysis evaluates
clients and customers by scoring
them in three categories: how
recently they’ve made a
purchase, how often they buy,
and the size of their purchases.
Tool used : KNIME

KNIME, the Konstanz

Information Miner, is a free
and open-source data
analytics, reporting and
integration platform.
 What all parameters used and assumptions made

• As per instructions the column 'Days since last order' is ignored and new
column Recency as '[Max(order date)-order date]'
• We have assumed ‘01-06-2020’ as a reference date and created recency
column.
• The calculated formula for:
• Recency :- [min(Recency) customer wise].
• Frequency:- [count(customer name) customer wise]. We can also take order quantity
• Monetary:- [sum(unit price + qty ordered) customer wise]. We can also take sales
• Based on above we have made 3 bins : high , medium , low
KNIME Workflow
Few rows of output
Inferences from RFM Analysis and identified
segments
Who are your best customers?
Which customers are on the verge of churning?
Who are your lost customers?
Who are your loyal customers?
 Top 5 best customers

• According to RFM score we have grouped the top customers.

• We have given importance to recency more and ordered the
customers accordingly.
 Top loyal customers

• Based on RFM analysis these are the loyal customers

• We have focused on monetary value
• If we focus on these customer we can turn them in to best customers.
 Verge on churning Customers

• As per RFM score we can see that these are the top customers on the verge of churning.
• We should focus on these customers before we lose them.
• We should try some action plan to convert them into regular customers.
 Top Lost Customers

• As per RFM score we can see that these are the customers which we have lost.
• There recency is very low as well as they have not made purchase frequently.
• We should study them survey them to understand the reasons why we lost them. And
take further steps so that we do not lose the customers.
05 Recommendations
 Recommendations
• According to RFM analysis, customers can be categorized into four distinct groups: best, loyal, verge of
churn, and lost customers. It is important to develop a focused approach for each group in order to
optimize customer retention and enhance customer experience.

• best customers, it is recommended to provide personalized recognition, exclusive offers, and incentives
to ensure that they continue to choose our company over others. By doing so, we can maintain their
loyalty and strengthen the long-term relationship.

• loyal customers, it is essential to offer periodic discounts and offers to keep them engaged and
interested in our products or services. By keeping them engaged, we can turn them into our best
customers and improve their satisfaction level with our brand.

• verge of churn customer, we need to develop an effective action plan to prevent them from leaving the
company. We can conduct surveys, offer incentives, and personalize the communication to identify and
address their concerns, and thereby increase their loyalty towards our brand.

• lost customers, it is important to analyze their behavior and preferences to identify the reasons for their
departure. By identifying the key drivers of customer churn, we can develop targeted strategies to prevent
such occurrences in the future and improve our overall retention rate.
Thank you