Andrew Jenkins

Manabu Morita

Thanapol Poopunsri

Steven Stavrou

Siriorn Vichaiwatanapanich

Neoshop

Problem & Our Approach

Problem: Declining revenues and customer loyalty. Find

the best strategy to increase revenue from current

customers and retain them.

Our Approach: Analyzed data in SPSS and visualized in

Tableau to understand the difference of each loyalty

segment.

Limitations & Assumptions• No gender information

• Only provided average spending

• Only one product (record) per customer

• No cost data

• Sales/Products could be seasonal

• Assume that conversion rate for a single channel is same for all

segments

• We don’t know physical store locations

• Based on current customer segments. Could be different.

Key Findings

Total Spending Avg spending/customerNumber of customer

• Silver has the most customers, smallest basket.

• Gold has the least customers, largest basket.

Key Findings

Key Findings• Total Spending by product category

Key Findings• Product sub-category by segment - Software and Book

Key Findings• Product sub-category by segment - Video game

Marketing Campaign• Run 3 outbound campaigns to get the

highest conversion rate through different

channels

• Direct mails on gold customers for two

weeks

• Run inbound marketing (Web & POS) to

support outbound messages (direct mail,

mobile apps, social network)

• Focus on specific product marketing for

Electronic (Gold and Silver) and Books

(Silver and Bronze)

Marketing CampaignSegment Current

avg

spending

Additional avg

spending from 5

week campaign

% increase New Total avg

Spending

Gold 62.98 26.48 42% $59,941

Silver 11.29 2.92 26% $67,239

Bronze 19.75 6.61 33% $85,387

• Evolving industry

– Are the old segments still valid?

• Provided Limited data

– There may be other legitimate factors

Time to Re-segment?

Methodology

• Use XL Miner to transform variables

– Missing data

– Dummies

– 1 Bin

– Results in 21 segmentation variables

• Run the segmentation with ME XL

Output

Loyalty Test