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

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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