Maven Reward Challenge

Project Goal:

To identify key customer segments and develop a data-driven strategy for future promotional messaging and targeting.

Dataset Overview: The dataset includes three files:

• Customers: Customer ID, date, age, income
• Events: Customer ID, event, hours since start, value
• Offers: Offer ID, offer type, difficulty, reward, duration, and channel

Key Insights: The report is divided into three main segments:

1. Which offers had the highest conversion rates? Analysis of the offer data reveals that discounts were the top-performing offer type, surpassing BOGO (Buy One Get One) in terms of conversion rates. The preferred channels for these offers also contributed to higher conversion rates.

2. What are the top customer segments based on age, income, and conversion rate? Based on age and income data, the most significant customer segments are Baby Boomers, followed by Gen X, while Gen Z represents the smallest group. The two leading income brackets, $60-75k and $45-60k annually, together comprise about 50% of the customer base.

3. What are the top customer segments based on purchase value, frequency, and recency? An RFM (Recency, Frequency, Monetary) analysis was conducted to categorize customers by their purchasing behavior.The RFM analysis helped categorize customers into high, mid, and low-value segments. Only 20% of customers are high-value, with high purchase frequency and spending. About 40% are low-value, but their view rate exceeds 89%, suggesting an opportunity to increase their purchasing frequency through targeted discounts and free product offers.

   • Recency: Days since the last purchase
   • Frequency: Total number of purchases
   • Monetary Value: Total amount spent by the customer

Channel Insights: Social media emerged as a top-performing channel for driving conversions. However, utilizing a mix of channels may further improve overall conversion rates.

Top Three Key Customer Segments to focus on:

1. Boomers (Ages 57-75):

   • Income: $45-60k or $60-75k
   • Gender: Female/Male
   • Preferred Channels: Email/Web (high view rate)
   • Preferred Offer Type: Discount

2. Gen X (Ages 44-56):

   • Income: $45-60k or $60-75k
   • Gender: Female/Male
   • Preferred Channels: Email/Web (high view rate)
   • Preferred Offer Type: Discount

3. Millennials (Ages 26-43):

   • Income: $30-45k
   • Gender: Female/Male
   • Preferred Channels: Social Media (second-highest view rate after Gen Z)
   • Preferred Offer Type: Discount

Thank you.