Exploratory Data Analysis (EDA) On Customer Purchase Data-Assignment Day 19
Exploratory Data Analysis (EDA) On Customer Purchase Data-Assignment Day 19
(EDA) on Customer
Purchase Data
Understanding Customer Behavior Through Data Insights
Number of Columns: 19
- Purpose of Analysis: This dataset is used for exploratory data analysis to uncover patterns and trends in
customer purchasing behavior, such as how demographics, product categories, and payment methods
influence spending.
- Data Types: The dataset contains both numerical data (e.g., Age, Purchase Amount) and categorical data
(e.g., Gender, Item Purchased, Category), allowing for a comprehensive analysis of various factors.
- This dataset provides valuable insights into customer behavior, which can be used for market segmentation,
targeted marketing strategies, and enhancing customer satisfaction.
Insight 1 - Distribution of Purchase by Gender
● Significant differences in purchasing behavior were observed between genders, particularly in specific product categories.
This indicates a need for targeted marketing strategies based on gender preferences.
● Older customers tend to spend more, highlighting a potential opportunity for businesses to focus on this demographic
segment for promotions and marketing efforts.
● Certain payment methods, such as credit cards or digital payments like PayPal, are more commonly used. This suggests that
businesses should consider optimizing their payment options to enhance customer experience.
● A positive correlation between review ratings and past purchases indicates that improving customer experience can lead to
better ratings, which may, in turn, influence future purchases.
● Analysis of discount utilization showed varied impacts on purchase behavior. Understanding which discounts lead to
increased sales versus those that hurt profit margins is essential for effective pricing strategies.
Recommendations
● Develop marketing campaigns tailored to gender-specific preferences and purchasing habits. For instance, highlight products
that tend to attract more female or male customers in their respective categories.
● Create targeted promotions and loyalty programs aimed at older customers, who tend to spend more. This could involve
personalized marketing messages or products that cater to their interests.
● Ensure that the most popular payment methods are prominently featured and provide incentives for using these methods.
Offering promotions for digital payment methods could encourage more customers to use them.
● Invest in customer service improvements and post-purchase follow-ups to enhance overall customer satisfaction. Encourage
feedback to gain insights into areas for improvement.
● Regularly analyze the effectiveness of discount offers to identify which ones drive sales without significantly impacting profit
margins. Implement A/B testing for discounts to assess their effectiveness in real-time.
● Use positive review ratings in marketing materials to build trust and credibility. Additionally, encourage satisfied customers to
leave reviews to bolster product reputation.
Link to Colab
Link to colab
Thank You