Maven Cafe Rewards Challenge

This Power BI dashboard project analyzes customer segments, offer performance, and transaction data to provide data-driven insights. The goal is to identify key customer segments, evaluate the effectiveness of different marketing offers and channels, and create a strategy for future targeted promotions. The dashboard includes interactive visualizations, KPIs, and detailed analysis to support business decisions aimed at increasing customer engagement, optimizing offer completion rates, and maximizing revenue.

Analysis:

Key Metrics Overview:

• Revenue & Customer Base: The café generated a total revenue of $1.78M from 17K customers, resulting in an average revenue per customer of $107.1. This indicates a steady customer base with moderate revenue contributions.
• Customer Growth: Membership sign-ups peaked in 2017 with 6,469 customers, followed by a drop in 2018 (4,198) and 2016 (3,526). This suggests a surge in customer acquisition in 2017 but slower growth in subsequent years.
• Offer Completion: Of the total offers sent (10 campaigns), only 25.1% were completed, indicating potential for improvement in promotional targeting and messaging.

Customer Segmentation Insights:

• Age Group Focus: The 56-65 age group is the most lucrative, contributing $427K in transactions, followed by the 46-55 age group with $377K. Customers in the older age brackets tend to have higher transaction values, showing that older customers are more engaged and spend more.
• Income Distribution: Upper-middle-class customers represent the majority (48.53%) of the customer base, followed by middle-income (37.89%) and higher-income (13.58%). This suggests that targeting middle and upper-middle-income customers with relevant offers could enhance revenue.
• Gender Segmentation: Male customers dominate with 49.91% of the total customer base, followed by females at 36.06%. The gender balance shows that promotions targeting both genders are critical, but with a slight male tilt in messaging.

Offer Performance Insights:

• Most Effective Offer: Discount offers were the most popular, especially among male customers, showing a strong preference for price reductions. This suggests that promoting discounts to male customers might yield better results than other offer types.
• Channel Effectiveness: Channels combining web, email, mobile, and social media saw the highest engagement (4 offers sent), indicating the effectiveness of multi-channel campaigns. The most successful campaigns use a mix of digital touchpoints.
• Offer Completion Trends: Offer completions were highest in 2017, with significant engagement in BOGO and discount offers. Discount offers saw more completions in 2017 compared to BOGO, reinforcing the appeal of discounts.

Transaction Analysis:

• Total Transactions: The total number of transactions was 139K, with an average transaction value of $12.78. This indicates that customers are making frequent, smaller transactions.
• High-Spending Customers: The top customers contributed significantly to the total transaction value, with the highest contributing $1.61K in transactions. The 56-65 age group, particularly female customers, has higher transaction values, making them a key demographic for personalized offers.
• Seasonality: August saw the highest revenue, contributing $178K in transactions. This seasonal peak suggests that targeted promotions during this period could further boost revenue.

Customer Interaction Insights:

• High Engagement Rate: The offer view rate is 75.7%, which shows that most customers who receive offers engage with them at some level. However, this doesn’t always translate into completions, signaling a gap in the customer journey.
• Gender-Based Offer Response: Males responded more actively across all stages of the offer journey (offer received, viewed, and completed), suggesting that men are more responsive to offers, especially discounts.

Recommendations:

1. Target Older Age Groups (56-65): Given their higher transaction values and engagement, prioritize targeting customers in the 56-65 age group. Custom-tailor promotions to their preferences, particularly around discounts and value-driven offers, which seem to resonate well with them.
2. Focus on Upper-Middle Income Customers: This segment makes up nearly half of the customer base and offers significant potential for revenue growth. Special promotions, loyalty programs, and premium offers could be designed to encourage further spending.
3. Leverage Discount Offers: As discount offers are the most popular among customers, especially males, increasing the frequency of discount-based campaigns may improve engagement. However, consider a balance between discount and BOGO offers to test further customer preferences.
4. Optimize Multi-Channel Campaigns: Campaigns across web, email, mobile, and social media have proven to be most effective. Expanding these efforts with personalized, segment-specific messages could enhance engagement and completion rates.
5. Boost Engagement During August: Given the seasonal peak in August, focus on launching high-value, time-sensitive promotions during this month. Exclusive deals or early-bird discounts might increase both transactions and offer completions.
6. Bridge the Completion Gap: Although 75.7% of customers view offers, only 25.1% complete them. Investigate reasons behind the drop-off and implement strategies like reminder emails or limited-time offers to encourage completion.

Strategic Approach:

1. Data-Driven Segmentation: Use customer data to create dynamic segments based on demographics and behavior (e.g., high-spending older customers or discount-loving male customers). Tailor messaging and offers accordingly.
2. Personalization in Messaging: Craft personalized promotional messages that resonate with each segment. For example, offer senior discounts to the 56-65 age group, or promote exclusive online discounts to tech-savvy upper-middle-income customers.
3. Customer Retention Focus: Encourage loyalty through targeted rewards programs that reward frequent buyers and high-value customers. This could include special deals for the top 20% of spenders or offer completion bonuses.
4. Multi-Channel Expansion: Expand the reach of multi-channel campaigns by incorporating personalized messages for each segment. Track performance across channels to continuously optimize the combination that drives the most completions.
5. Offer Variety: Test new offer types in addition to BOGO and discount (e.g., exclusive experiences or limited-time bundles) to diversify the promotion strategy and attract different customer segments.