Insight into Customer Segmentation by Cornelia van der Walt

In retail, understanding your customer is all, and when you do not have a brick and mortar storefront to attract new shoppers, it is even more important to get insight into the array of visitors who frequent your site. You need an idea of who they are, what they want and how to attract them. This is a universal truth of all businesses and the lessons learned here could be easily applied to other industries.

Enter data science and the ability to segment your customers. What is customer segmentation? What types of segmentation are there? What models could you use? How do you do it? What is it good for? Having done it a few times, first for Superbalist, then for the Spree customers during the Superbalist/Spree merger, I might have a few tricks and tips to share.

The talk will look at a high-level overview of clustering, then deep-dive into the code a bit before coming up at the end with a few use cases and conclusions. I'll discuss a few potential model algorithms we investigated, but focus mostly on the K-Means clustering model.

If you have some data science experience it would be helpful, but the talk should provide interesting information for everyone. The talk aims to leave you with a solid idea of how to build a customer segmentation model of your own. Come discover the joys of classification models with me!

Transcript

1. 1 Customer Segmentation Cornelia van der Walt Superbalist data scientist
2. Scope of this Session 2 A quick look at how to segment customer data. Some basics in data preparation, feature creation and preprocessing, Then on to the fun parts: ML and tweaking! The Session Introduction Data Prep Insights Algorithms
3. Find customer related data Methodology 3 Step 1 Join, filter, transform and clean data Step 2 Cluster data Step 3 Analyse data Step 4 Action insights Step 5
4. PERSONAS Who is the Customer? 4
5. The Customer 5 ...and what they’re into
6. Customer Personas Overview 6 Lara Cara Sam Persona 1 Persona 3 Persona 4
7. Exploring the Customers 7 Let’s Look at Code
8. Speaking to the Customers 8 WHAT NEXT
9. General Message 9 What do customers use as their preferred method to interact with you? How to talk to them Let them know about the product they know and love. Find out what is most meaningful to them. What they care about Modify your service offering to match the customer budget. What is their preferred price point Find what other customers in the segment with similar tastes also like to expand your offering. Suggest more options What the Customer Wants to Hear
10. • Product ABC • Price point 1 • Communicate through email Individual Focus Personalize it 10 Lara Cara • Product XYZ • Price point 2 • Communicate by SMS Sam • Product ABC and XYZ • Price point 1 • Communicate by phone
11. Questions? https://goo.gl/g2S6cf vdwaltc.sci@gmail.com github.com/Echochi www.linkedin.com/in/cornelia-van-der-walt 11 THANK YOU