Making Sense of Transaction Data

Summarize
Transaction Data

Deriving Customer
Attributes from
Bucket 2 3 Transaction data
Transactions
into Categories

INSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD

Summarizing Transaction Data

–Summarized transaction data at customer level helps

understanding customer behavior
–Micro-level summary of your transaction data
–Gives a sense of what individual customers are doing
–Tabulate on your customer record of how many
transactions they performed in given time period (eg:
bank statement, grocery store discount)
–Focus to recent transactions as they are the most
informative

INSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD

Bucketing Transactions into Categories

–Companies have different levels of product hierarchies

–Using such classifications can generate a picture of your
customer’s product needs that’s manageable and
actionable (bank & grocery store)
–Summarizing products into groups at the customer level,
need to balance simplicity and completeness
–You have to have a manageable number of buckets, but
capture the full breadth of your business

INSTITUTE OF MANAGEMENT TECHNOLOGY, HYDERABAD