Problem & Our Approach
Problem: Declining revenues and customer loyalty. Find
the best strategy to increase revenue from current
customers and retain them.
Our Approach: Analyzed data in SPSS and visualized in
Tableau to understand the difference of each loyalty
Limitations & Assumptions
• No gender information
• Only provided average spending
• Only one product (record) per customer
• No cost data
• Sales/Products could be seasonal
• Assume that conversion rate for a single channel is same for all
• We don’t know physical store locations
• Based on current customer segments. Could be different.
Total Spending Avg spending/customerNumber of customer
• Silver has the most customers, smallest basket.
• Gold has the least customers, largest basket.
• Total Spending by product category
• Product sub-category by segment - Software and Book
• Product sub-category by segment - Video game
• Run 3 outbound campaigns to get the
highest conversion rate through different
• Direct mails on gold customers for two
• Run inbound marketing (Web & POS) to
support outbound messages (direct mail,
mobile apps, social network)
• Focus on specific product marketing for
Electronic (Gold and Silver) and Books
(Silver and Bronze)
spending from 5
% increase New Total avg
Gold 62.98 26.48 42% $59,941
Silver 11.29 2.92 26% $67,239
Bronze 19.75 6.61 33% $85,387
• Evolving industry
– Are the old segments still valid?
• Provided Limited data
– There may be other legitimate factors
Time to Re-segment?
• Use XL Miner to transform variables
– Missing data
– 1 Bin
– Results in 21 segmentation variables
• Run the segmentation with ME XL