BUS2002 - Customer Analytics for XYZ Mart

Assignment Task 

Introduction

XYZ Mart is a thriving online retail company that has been operating in the market for the past five years. They offer a diverse range of products, including electronics, fashion, home decor, and more, catering to a wide customer base. Over 7me, XYZ Mart has gathered a substantial amount of customer data, including purchase history, customer feedback, and demographic information. To gain valuable insights from this data and enhance their business strategies, XYZ Mart has decided to perform customer analyses using Microsoft Excel.

Objective

The primary objective of this customer analysis project is to analyze XYZ Mart's customer data and derive actionable insights to improve customer sa7sfac7on, identify high-value customers, and understand customer preferences better. By applying data cleaning, basic metrics calculation, customer segmentation, and text analysis techniques, XYZ Mart aims to make data-driven decisions that positively impact customer experience and overall business performance.

Task

1. Data Cleaning and Prepara2on Before diving into data analysis, you will import the dataset into MicrosoC Excel and perform data cleaning tasks. You will remove any duplicate records to ensure data integrity and handle missing values appropriately. In cases where the age of a customer is missing, use the average age as a proxy value, ensuring that the analysis is not compromised by incomplete data. Additionally, verify and ensure that data types are consistent across all columns.

2. Basic Customer Metrics The next step involves calculating basic customer metrics to gain an overview of XYZ Mart's customer base. You will calculate the total number of customers in the dataset and determine the average age of the customers. By analyzing gender distribution, you will ascertain the percentage of male and female customers. Using purchase history data, you will calculate the total number of purchases made by each customer type and derive the average purchase amount across all customers, presenting for all genders in each customer type. Furthermore, you will calculate the overall customer sa7sfac7on score, which provides an essential benchmark to evaluate customer feedback, wherein you explain how sa7sfac7on has changed across the years (use 1 or 2-year intervals). Please indicate the customers that are most profitable.

3. Customer Segmenta2on The students employ Excel's PivotTable and RFM analysis to perform customer segmentation, enabling XYZ Mart to target specific customer groups efficiently. First, you will create age brackets to categorize customers into different age groups, allowing XYZ Mart to tailor marketing strategies according to different age demographics. Subsequently, you will use Excel's Pivot Table to analyze the distribution of customers based on both gender and age group, gaining insights into the buying behavior of various customer segments. To identify high-value customers, you will conduct RFM analysis, considering Recency (7me since last purchase), Frequency (number of purchases), and Monetary Value (total purchase amount).

4. Text Analy2cs for Customer Feedback In this phase, you will focus on text analysis to explore customer feedback and suggestions. You will analyze the feedback (ra7ng) provided by customers regarding their purchases to identify common themes and statements expressed. By calculating the average sa7sfac7on score for each sen7ment category and the Net Promoter Score, gain further insights into customer sa7sfac7on levels and potential areas for improvement.

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