Data Analytics Assignment #2 Customer Categorization: The concept began in B2B marketing long ago, and, like Relationship Marketing, has also been adopted by B2C marketing. This idea is simple and closely related to inventory management control. Customers come in three types, A, B and C. ‘A’ customers are your most profitable. According to the Pareto Principle, 20% of your customers account for 80% of your profit. These customers deserve your attention and priority. Keep them coming back. ‘C’ customers may not be profitable at all or account for very little profit. They’re probably not worth the effort put into them and can be dropped or dissuaded from returning. At the very least, ignore them. ‘B’ customers are somewhere in the middle. The aggregate of their sales is large but their profitability is nowhere near ‘A’ customers. Can they be turned into ‘A’ customers? Are they worth that effort? If you’re interested in learning more about customer categorization and profit try this (optional) Harvard Business Review article: https://hbr.org/1987/09/manage-customers-for-profits-not-just-sales This assignment entails, you guessed it, categorizing Acme’s customers. Identify A, B, and C customers in your assigned Segment (each customer will belong to one of three “buckets”). If your last name starts with a letter between A and I (including A and I), analyze the Consumer segment. If your last name starts with a letter between J and R(including J and R), analyze the Corporate segment. If your last name starts with a letter between S and Z (including S and Z), analyze the Home Office segment. Build a Story (in Tableau) to show the 3 groups and visually show their profitability (hint: this requires more than just a list of names, but make sure the names are there). (Hint: Tableau wants to cut off the list and you're going to have to do some manipulation to get the top 20 to show properly.) (Note: It's a lot more interesting if you use the bottom of the C customer list rather than the top but it's your choice as to which to show.) Then, go at least one level deeper into the analysis. (This entails figuring out what kind of analysis would be useful as well as performing it.) Assignment Instructions: You must complete the assignment in Tableau. Then, you will submit a Word document that includes: 1- The Story (create in Tableau; paste into Word) Include evidence that you created the categories; show your customer names (top 20 in each category). 30 points What additional analysis did you do? include evidence for two additional analysis. It could be any analysis (visualization) that offers useful information for firm's marketing activities. For example, are the ones who get higher discounts more profitable than others? 30 points What marketing tactics should be used for each group? (at least two marketing tactics for each group, Be specific to your segment.) 30 points What would be your next steps in analysis to dig even deeper? 10 points This is the same dataset as the first assignment.
Data Analytics Assignment #2
Customer Categorization: The concept began in B2B marketing long ago, and, like Relationship Marketing, has also been adopted by B2C marketing. This idea is simple and closely related to inventory management control. Customers come in three types, A, B and C.
‘A’ customers are your most profitable. According to the Pareto Principle, 20% of your customers account for 80% of your profit. These customers deserve your attention and priority. Keep them coming back.
‘C’ customers may not be profitable at all or account for very little profit. They’re probably not worth the effort put into them and can be dropped or dissuaded from returning. At the very least, ignore them.
‘B’ customers are somewhere in the middle. The aggregate of their sales is large but their profitability is nowhere near ‘A’ customers. Can they be turned into ‘A’ customers? Are they worth that effort?
If you’re interested in learning more about customer categorization and profit try this (optional) Harvard Business Review article:
https://hbr.org/1987/09/manage-customers-for-profits-not-just-sales
This assignment entails, you guessed it, categorizing Acme’s customers. Identify A, B, and C customers in your assigned Segment (each customer will belong to one of three “buckets”).
If your last name starts with a letter between A and I (including A and I), analyze the Consumer segment. If your last name starts with a letter between J and R(including J and R), analyze the Corporate segment. If your last name starts with a letter between S and Z (including S and Z), analyze the Home Office segment.
Build a Story (in Tableau) to show the 3 groups and visually show their profitability (hint: this requires more than just a list of names, but make sure the names are there). (Hint: Tableau wants to cut off the list and you're going to have to do some manipulation to get the top 20 to show properly.) (Note: It's a lot more interesting if you use the bottom of the C customer list rather than the top but it's your choice as to which to show.)
Then, go at least one level deeper into the analysis. (This entails figuring out what kind of analysis would be useful as well as performing it.)
Assignment
Instructions:
You must complete the assignment in Tableau. Then, you will submit a Word document that includes:
1- The Story (create in Tableau; paste into Word) Include evidence that you created the categories; show your customer names (top 20 in each category). 30 points
What additional analysis did you do? include evidence for two additional analysis. It could be any analysis (visualization) that offers useful information for firm's marketing activities. For example, are the ones who get higher discounts more profitable than others? 30 points
What marketing tactics should be used for each group? (at least two marketing tactics for each group, Be specific to your segment.) 30 points
What would be your next steps in analysis to dig even deeper? 10 points
This is the same dataset as the first assignment.
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