Mini project1 team5

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We shall identify most likely loyal customer for the gaming company based on its customers details and their previous game preferences.

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Mini project1 team5

  1. 1. Inspire…Educate…Transform. Mini Project - 1 Loyalty Program Team 5 Satyasheel Radhika Rani K Krishna Chaitanya Saikumar Allaka Prashanth Soma November 25, 2013 The best place for students to learn Applied Engineering http://www.insofe.edu.in
  2. 2. Introduction We shall identify most likely loyal customer for the gaming company based on its customers details and their previous game preferences. We assume that customers demographic and gameplay preferences would help us define loyal customers. We will use the customers demographic and their past game preferences to discover relationship between the known characteristics of a customer to their reaction to the loyalty program. The best place for students to learn Applied Engineering 2 http://www.insofe.edu.in
  3. 3. Business use Gaming company can maximize their games sales and retain customers without compromising on revenues Provides customer’s gaming pattern insights and helps gaming company in building and promoting right games to the right customers. The best place for students to learn Applied Engineering 3 http://www.insofe.edu.in
  4. 4. Process • Derive new attributes from the existing data to get a bigger picture and to learn their characteristics. • Bin them according to the Recency, Frequency, Monetary Value (RFM) Model. • Merge them accordingly and keep the most relevant data for discovering relationships • Fill the missing values, by guessing or ignoring. The best place for students to learn Applied Engineering 4 http://www.insofe.edu.in
  5. 5. Process [contd.] • Visualize the processed data to bring better business insights • Test the data insights accordingly Error Predicting a loyal customer as non Loyal Customer (False Negative) Error metric: Sensitivity/Recall. LOYAL CUSTOMER Predicted Positive Predicted Negative Actual Positive TP FN Actual Negative FP TN TP: True Positive FP: False Positive The best place for students to learn Applied Engineering TN: True Negative FN: False Negative 5 http://www.insofe.edu.in
  6. 6. Derived Attributes Recency Recent Customer + Frequent Customer + Monetary Value --------------------------Most likely customer RecencyApp Last time purchased from the application RecencyLF Last time purchased from the LF Recencydown Last time downloaded Frequency FrequencyLF Transactions From the Website2 FrequencyApp Transactions From the Other application/other websites FreqGamePlay Number of games played Monetary Value Min number of days Last time purchased minRecencyCum360 within 180 days NumHouseChildren Number of children per customer TotalTimeGamePlay Total gaming time The best place for students to learn Applied Engineering 6 http://www.insofe.edu.in
  7. 7. Graphs Houses with children between the age group of 5 and 10, across all game types, generate maximum Revenue. Target these age group houses. The best place for students to learn Applied Engineering 7 http://www.insofe.edu.in
  8. 8. Graphs [contd.] US customers seems to be the ones who buy/play more games. Hence, generate much of the Revenue compared to UK. The best place for students to learn Applied Engineering Apps are the most favorite source of medium used to play games. Thus, maximum Revenue is generated through app. 8 http://www.insofe.edu.in
  9. 9. Graphs [contd.] House with 2 – 4 children, irrespective of their age, seem to play more games. Hence, Families with 2-4 children have to be concentrated up on, as they are the ones who are generating highest revenue. The best place for students to learn Applied Engineering 9 http://www.insofe.edu.in
  10. 10. Graphs [contd.] Number of gamers who play games are gender unbiased. Frequency of game play distributions are similar for female and male children. Gender need be major point of focus. The best place for students to learn Applied Engineering 10 http://www.insofe.edu.in
  11. 11. Graphs [contd.] Most revenue is generated through customers who use credit card followed by USL.F com Physical Card and US Retail physical card. These customers can be considered for providing offers. The best place for students to learn Applied Engineering 11 http://www.insofe.edu.in
  12. 12. Hypothesis Test Null Hypothesis: Average number of children in a house is 6 with 99% accuracy Alternate Hypothesis: Average number of children in a house can never be 6 with 99% accuracy Statistic: Z-Statistic, One attribute with more than 30 records From the above graph, we are 99.99% confident that, average number of children per house can never be 6. Null Hypothesis assumtion is incorrect The best place for students to learn Applied Engineering 12 http://www.insofe.edu.in
  13. 13. Code snippets • Packages: sqldf, DMwR, reshape • Filter Data toDate30 <- as.Date('2012-01-26',format='%Y-%m-%d') widCart_30 <- subset(stg_bgdt_cust_purc_app_updated, stg_bgdt_cust_purc_app_updated$TRANSACTION_DATE < toDate) • Missing Values Central Imputation used for filling central tendency values (KNN Imputation is not used as there are 108 dimensions with 1 lakh plus records, we tried it by running 2 days, but no use!!) • Derive Data maxValueInRow <- data.frame(castedChannel$CONTACT_WID, apply(castedChannel[, -1], 1, which.max), colnames(castedChannel[, -1]) [apply(castedChannel[, -1], 1, which.max)], rowMeans(withoutWID, na.rm=T)) #computes column name with with max value and maximum value plus mean value for eacsh row in castedChannel removing NA value ... The best place for students to learn Applied Engineering 13 http://www.insofe.edu.in
  14. 14. International School of Engineering Plot 63/A, 1st Floor, Road # 13, Film Nagar, Jubilee Hills, Hyderabad - 500 033 For Individuals: +91-9502334561/63 or 040-65743991 For Corporates: +91-9618483483 Web: http://www.insofe.edu.in Facebook: https://www.facebook.com/insofe Twitter: https://twitter.com/Insofeedu YouTube: http://www.youtube.com/InsofeVideos SlideShare: http://www.slideshare.net/INSOFE LinkedIn: http://www.linkedin.com/company/internationalschool-of-engineering This presentation may contain references to findings of various reports available in the public domain. INSOFE makes no representation as to their accuracy or that the organization subscribes to those findings. The best place for students to learn Applied Engineering 14 http://www.insofe.edu.in

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