FINAL PROJECT

Training program:
Master in Big Data and Business Intelligence
Subject:
CUSTOMER ANALYTICS
Send to: marketing@eneb.com

Last Name/Surname: Abboub

Name: Mohamed El Mehdi
ID/Passport: 156537801
Address: Dareen Tower. Appart 14A05
Region: Doha
Country: Qatar
Telephone: 00974 55642274
E-mail: abboub.mehdi@gmail.com
Date: 28 October 2020

ENEB Business School

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 BACKGROUND

Fruit Box is a company dedicated to the sale of seasonal fruit boxes on request.
These are closed boxes, so users can not change the products to their liking.
They usually have four models, which combine different types of fruit and three
sizes; S, M and L.

The company is located in the town of Huelva (Andalusia, Spain), and although
many of the fruits they sell are grown there, the company acquires some products
from companies in other autonomous communities, such as oranges and
bananas.

Traditionally, orders were made by phone or by mail, but for some time the
company opened its own website that has an online store to place orders, as well
as a mobile application. In addition to that, a profile has been opened on
Facebook and Instagram, both of which have been very well received.

The company has a long history, as well as a large number of customers who are
loyal to the company and who buy their boxes of fruit throughout the year.

Since a few months ago the company is losing regular customers due to the birth
of other companies dedicated to the same field, but with notable differences, such
as the possibility of personalizing their fruit boxes.

Some characteristics that we must consider concerning the main competitor of

Fruit Box are:

- Location: Barcelona.
- Type of boxes: customizable boxes of fruit and vegetables in season,
as well as pre-established boxes with exotic fruit, such as mango,
papaya or avocado, which they acquire from a Malagueño producer.

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 - There are no configured cash measures, but from a minimum, the
customer can buy all the fruit and vegetables he wants.
- In Barcelona, they have an immediate delivery service, while in the rest
of Spain they deliver the products in less than 24 hours.
- For those customers who know what they want, they offer the
possibility to register and subscribe to a type of box temporarily.

The type of client is very varied, from individuals to companies, who buy the fruit
for their employees.

Another problem that they detect is that the online store is not very manageable.
Due to this, many customers call to place an order or write an email complaining
about the deficiencies. Some problems that the online store presents are: you
cannot access the customer area if you have not previously added an item to the
cart or the payment method is requested before the customer shows the price of
your order.

Besides, and for some time, they have changed their transportation service,
which also leads them to receive complaints because some of the orders arrive
late and in poor condition.

The company has decided to carry out a process of customer analytics so that it
allows to know the reasons that have led to losing customers, as well as to know
their customers better and to be able to offer them the product they want and the
way they wan

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 FORMULATE
1. Make a SWOT analysis of the current situation, so that the weaknesses
of the company and the external threats to which they must face are
apparent.
Strengths
 Large number of loyal clients
 Variety of fruits offered
 Quality products
 Recognized over Spain
 Long history of success
 Has an online store
 Has a mobile application
 Social network channels
 Positive feedback and good
reception through social
network (Facebook and Insta)
Weaknesses
 Selling products on limited
packages - 4 models and only
3 sizes (S, M and L).
 Fixed items on the boxes that
does not allow the customer to
change the order to their liking
 Sold exclusively on request
 Dependence on the supply of
base and high demand fruits
from other companies and
autonomous communities such
as of oranges and bananas.
 The online store is not very
manageable and difficult to use
 Inefficiencies and delays in the
transportation services
 Incremental and multiple
customer complaints
 Online purchase process is
difficult, which requires a lot of
telephone and email support
 Due to the change of service of
transportation, there is a
notable delay in deliveries
which results often in delivering
degraded quality of fruits
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Opportunities
 Influx and increasing online
shopping
 Changing habits by customers
about online shopping
 Tendency to consume natural
products and more dietary
(fibers)
 Pandemic and lockdown
effects promotes online
shopping
 Spain is one of the world's
largest economy in fruit and
vegetable production
 Local and European potential
market expansion
 Shortage in supermarkets due
to supply chain issues
 Government campaigns
support export and domestic
consumption
 Bio products preferences
 Suppliers barging when
production overflow
 Customers cannot access the
customer area, if not before an
item has been added to cart.
Threats
 Loss of customers (including
loyal ones)
 Online prices comparators
between fruits suppliers
 Import low cost products from
North African countries
 Market penetration of new
competitors (local and external)
 Increased prices of fruits
 Chain production using OGM’s
 Big chain supermarkets
 Lack of trust and confidence
from some loyal customers
about quality offered
 Tax increase
 Supply chain constraints
 Risk of economic crisis and
to decreased monthly income for
families
 Short products expiry dates Vs
Delivery constraints out of
home town
 Failing to follow the digital
technology trends and loose
the online market dominance in
front Online competitors
 Increasing cost of delivery
services
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  Competition offers custom
boxes

Building the costumer Journey Map

The Customer Journey Map will allow us to trace and design a good experience
of customer, which is undoubtedly essential to the success of Fruit Box's
objectives. The idea with the map is to establish a correct experience and explore
which are the best attraction, conversion and loyalty actions to ensure an
increase in sales and retain loyal consumers. To establish the design of this tool,
we must consider the following (taken from the Costumer Analysis Module
document):
 Identify the clients
 Assess and know as best as possible your client
 Understand the stages of the bond to B2B or B2C marketing models,
which are applicable to the business of Fruit Box.
 Register indecisions and motivations
 Map interactions
 Analyze each key instance
 Internal processes of Fruit Box.
 Opportunities and feelings

Note: The rating is based on the Project information and background. There is no
data to be used or surveys to leverage on.

Figure 1 – Fruit box customer journey map – Physical Shop

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 Figure 2 - Fruit Box customer journey map - Online Shopping

Based on the problem statements and the information given on the Fruit Box
company project case, the development of each phase required pulling the
available manifestations and behaviors of consumers regarding the experience
they live in their relationship with Fruit Box for both physical and online shop
experience.

In summary, there is high resemblance in the 2 approaches when comparing the

physical and Online. The customer experience of the Online channel is being
more deficient than the On-site channel (compared to competitors) as there is
more tendency to use this channel. The above approach involves identifying
visually the weak points through the journey, prioritizing them and managing its
continuous improvement in both channels. To work on the improvement, a list of
SMART objectives has to be set (will be discussed in the next Project Point).
In other hand, when looking at what the competition is doing, it’s clear that the
weak points and the threats needs urgent and special attention from the Fruit box
management.
The expectations of the costumers are very high and will definitely look forward
the best, the easiest and streamlined customer journey experience to spend their
money on Fruits purchase.

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 2. Now that we know the situation of the environment, as well as our own in
detail, it is essential that we fix what we want to achieve with the
development of customer analytics. To do this, and following the SMART
technique, set those objectives you want to accomplish with the analysis
of your customers' data.

As discussed, and detailed in point 1 through the SWOT analysis and the
customer journey map, a set of improvement general actions can be proposed
through the following axis of interests:
The below table will help to set the final SAMRT objectives.

Area of Description
enhancement
Boxes Diversify the box size and contents to more choices
making consumers fell that they have the full freedom
to pick exactly what they want.
Suppliers Expanding the numbers of suppliers is a must have with
setting up Service Level Agreements (SLA’s) as well as
Product offer.
SLA’s on the expiry dates of the Products with high
eligibility of dehydration.
Transportation Products distribution should set a high-level standard of
delivery committing to country regulations and SLA’s
with transportation company provider. Fines should be
applied on delays caused by the transportation
company.
Online store Online store should be revisited by leveraging the
existing sites features and their usability. Streamlining
the basket selection and payment process.
The smart phone app needs to be re-visited to surpass
the competition apps leveraging from their user
experiences.

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 Marketing Target client segments. Establish segmented offer. Drive
targeted Marketing actions and customer loyalty and
create retention plans. Broaden the market footprint and
find new leads.

Based on the above general actions, more specific strategic objectives for the
Fruit Box company are developed:

 Gain 25% of online market share within the next 4 years in Spain.
 Deploy best in class Android/IOS App by H2 2021 for Online store
 Achieve a 30% increase in sales in the next year
 Achieve a minimum 45% Income before tax the next 3 years
 Increase foot print on the physical stores by investigating new trends over
the country
 Customer relationship management trainings and 100% certifications for
both physical store and online store employees
 Increase website page hits by 50% within 6months
 Study and finalize a customer segmentation strategy by end of the current
year
 Reach +80% satisfaction survey on all customer journey points the first 2
years and 90% the next coming two years.
 Smoothen the online user experience – Easy user graphical experience
and fast browsing – Comply to international standards
 Target 1 Million followers to the online Facebook and Instagram pages by
end of year.
 Implement Zero “0” failure strategy for good delivery – Satisfied or refund

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 3. Explain whether you will use structured data or unstructured data for
your analysis. You must justify the reason for your choice, in addition to
determining what data you will accurately analyze to know what your
customers want. Justify your answer.

Customer analytics, also called customer data analytics, is the systematic

examination of a company's customer information and customer behavior to
identify, attract and retain the most profitable customers. It is used to help make
key decisions, through market segmentation and predictive analysis. The data
that are pulled out of the customer experience is huge and is split between
Structured and Unstructured.

Structured data
This type of data is found in most commercial ERP databases of any company
that have a predefined structure in which the fields they occupy a fixed place.
They come from data created by the company, data triggered, transaction-driven
data, compiled data, or data experimental, basically, for the Fruit Box company,
the structured data we are looking for are Retail transactions, orders, bills,
website visits and hits, structured quality client surveys, etc.

Unstructured data
It is binary data with unidentified internal structure. It's massive and messy of
various objects that have no value until they are identified and stored in an
organized manner. Some examples are the comments on Facebook page, text
comments on the Fruit box website left by clients.

In the case of the Fruit Box company, it has been decided to use both structured
data and unstructured, like this:
 Descriptive data. Attributes, characteristics and sociodemographic data.
Client's first and last name, email, family size, who decides the purchase. This
type of data can be extracted from sales invoices, customer registration and
customer surveys through from the web and emails. We can store this data
through tables of rows and columns and XML files.

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 Behavioral data. Transactions, order details, payment history, purchase
frequency and average order value. Data can be extracted directly from
the company website and files from the sales and accounting department.
 Interaction data. Extracted from mail, web, navigation, app and networks
social and customer insights. These can be stored by NoSQL.
 Attitudinal data. Opinions, needs, wishes and suggestions taken from
social networks.
 Google analytics

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 4. When we have the data, we will proceed to its exploration, to verify that
the data we are going to analyze is correct and will provide us with the
necessary information.

Based on this data, what kind of graph or graphics would you use to
visualize all this information? Do you consider it necessary to relate some
of these variables? And why?

Regardless of what our goal is, it is very important to explore our data before
taking action. For big companies with considerable historical amount of data, it is
very important to know the data available before creating any model. No database
is perfect no matter how much effort we put in so we should check if there is lack
information, incorrect data or if data have been incorrectly introduced. For this,
data should be explored before starting, because if not we will either have to
modify data that are wrong in the middle of the process or we will create a model
whose results are incorrect.

Graphs are a very good way to identify data integrity issues through exploring the
it, we will also realize what type of customers we have, which will help us in the
construction of the model.
In the domain of Data Exploration, we have several types of graphs which will
help us to identify:

 What the maximum value of the distribution is

 The peaks in distribution.
 If data are normal
 The variation of data and if it is concentrated in a certain interval or in a
certain category.

The Kind of graphs used to visualize the information are: The Histogram and the
Bar graph

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The histogram:
The histogram is a display of statistical information that represents the frequency
of occurrence of specific phenomena which lie within a specific range of values,
which are arranged in consecutive and fixed intervals

The Bar graphs

A bar chart presents categorical data with rectangular bars with heights or lengths
proportional to the values that they represent. The bars can be plotted vertically
or horizontally.

In the case of Fruit Box, I consider relating some of the variables by applying the
Data exploration that uses a combination of general statistics (means, medians,
variance and counters). The variables that I want to relate are mainly:

 Box sizes S, M, L
 Purchase frequency: Day (D), Week (W), Month (M)
 Shopping channel: Physical shop(P), Web (W), telephone (T),
 Customer seniority with Fruit box: Years
 Customer gender (M or F)
 Customer status New(N), Loyal(L)

The above variables are the key input for any graph or any data exploration model
as it will give very accurate information to the Fruit box management about the
following:
 What is the most sold box size?
 What is the average frequency of purchases (D, W, M)
 What is the most preferred channel of purchases (P, W, T)
 What is the average years fidelity/seniority purchase of clients?
 How many new leads we have with clients and how are loyal client are
Fidel to Fruit box?

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 5. In addition to the segmentation variables proposed concerning Fruit Box,
do you think some other segmentation on some other variable would be
necessary? Justify your answer.

The number of segmentations can be very wide depending on the

requirements of the management and the questions asked by the business
team. All type of answers can be found through different segmentations.
For the Fruit box company case, and as a sort list, below are three types
of segmentations:
 Consumer behavior
 Social or Family Status
 Consumer Age or life cycle or life stage

The reason for choosing the above segmentation variables is as follows:

Consumer behavior
Understanding the customer behavior means understanding part of his Decision-
making process through and his buying characteristics and the environmental
stimulators.

Social or Family Status

Depending on the spending of the costumer, it is vital that we show the different
preferences of products based on the social status allowing the targeting of
actions towards a specific social class.

Consumer Age or life cycle or life stage

The age or life stage is a very important variable that needs to be considered in
all cases to understand the logic of purchasing products and services throughout
the life of a person. This is helpful to draft the pattern of behavior based on the
stage that the person is living. As an example, older people tend to spend less
on fruits compared to young or parents with new born children. Young parents
tend to have a higher purchase frequency compared to parents who have grown
up kids.

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 Bibliography

Web sites

None, ENEB. “campus.eneb.com” Customer Analytics.

https://campus.eneb.com/mod/quiz/view.php?id=10860

None, ENEB. “campus.eneb.com” Customer Segmentation.

https://campus.eneb.com/mod/quiz/view.php?id=10861

None, None. “sas.com” Customer Analytics.

https://www.sas.com/en_us/insights/marketing/customer-analytics.htm

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