The Look E-Commerce

Customer Segmentation
Dataset 2022

Prepared by Dini Chandra Jan 15th, 2023

1
Table Of Content
● Executive Summary
● Background
● Objective
● Analysis Scope & Approach
● Brief of Dataset
● Exploratory Dataset
● Analysis Process and Result
● Recommendation

2
Executive Sumarry

● In 2022, The Look E-commerce has more customers with “Others”

characteristics (just bought, don't spend too much money)
● Big spender is the highest GMV contributing customer (42.97%)
● China is the country with the most orders (33.92%)

3
 Background
The look e-commerce has an excellent growth both on GMV and numbers of
customers last year (2022). But now, they want to make targeted marketing for their
customers to improve the e-commerce selling performance, profit and they want to
know which customers seem worth or not getting treatment so they can save the
marketing budget.

4
The customer growth over 50% at the end of the year

Last year, customers

growth up to 51.8%,
this is the highest
growth since 2021
quarterly.

5
 Objective
The business needs, to segmentation customers by their transacional behavior to
improve the selling performance and determine the numbers of segments.

Addition, to understand the distribution of each segment on profit and other

variables.

6
 Analysis Scope and Approach
Data that used in this analysis is the customers transaction data on
Public Dataset Big Query that have been query on 5 January 2023.

RFM Segmentation method is used to analyze the customers

segmentation

https://www.putler.com/rfm-segmentation/
7
 Brief of Dataset

The dataset from 2022. contains 63116 rows and 11 columns, with 5 integer columns, 4
string columns, and 1 datetime column

8
 Exploratory Dataset

https://colab.research.google.com/drive/1efluAM5QN20MAABGQm-agABL4yYMAS3j?usp=sharing
9
Orders Last Years was Dominated by Working Age

10
The Look e-commerce
has a large market in
both genders with the
almost same
proportion

11
Saturday is the favorite day for customers to check-out

But it looks like there is not

a big gap around the other
days

12
33.92% of our Orders in 2022 are Dominated by China and Make
It the Most Orders Country

13
27.83% of Order on Q4 Came from Search and Growth 55.96% from Last
Quarter
Orders from search
on the search page
increased 55.96% in
the last quarter of
last year. but the
other channels are
not very performing

14
Analysis Process and Result

Jan 15th, 2023

15
 RFM Segmentation

We segmented the customers into 8 Classes to specify our marketing strategy and
which segments are not worth to be targeted in marketing

Variables used are the Lastest Transaction (Recency), number of orders

(Frequency), and how much money they spend (Monetary Value).

We score the recency, frequency, and monetary value and then segmented them
by their score. Score 1 means Best, score 2 means Good, score 3 means Middle,
and score 4 means Worst.

https://www.putler.com/rfm-segmentation/
16
 RFM Class Category
● 111 = Best Customers
● 112, 122, 211, 222 = Potential Customers
● XX1 = Big Spender
● X1X = Loyal Customers
● 3XX = Almost Lost (Hibernation)
● 4XX = Lost Customers
● 434, 443, 444 = Lost Cheap
● Lainnya (1XX & 2XX) = Others

17
'Others' Customers is the Biggest Class in 2022 with 29.47% and only
4.62% for 'Best' Customers

18
Bigspender Contributes 42.97% GMV of the Whole Class

Almost half of GMV is supplied by Big Spender even though most

of them only shop 6 times

https://startupstudio.id/gross-merchandise-value/ 19
Top 3 Category on Each Class by Number of Orders

we can use this

insight as a basis
for product
marketing for each
segment

20
Type ‘Others’ Customers has a Larger Proportion in Almost All
Countries

21
Recommendation

● Best Customer : Reward them. give a loyalty program to keep them become our best customer
● Potential Customer : Offer membership / loyalty program, recommend other products.
● Big Spender : Upsell higher value or pricy products.
● Loyal Customer : Offer bundling product, to increase the monetary and become big
spender/potential customer.
● Almost Lost : Share valuable resources, recommend popular products / renewals at discount,
reconnect with them.
● Lost Customer : Optional to targeted
● Lost Cheap : ignore, it spend lot of budget to reconnect.
● Others : Optional to targeted/recommend products

22
Appendix
BRD:

https://docs.google.com/document/d/1Xb6nVa8CBmVRR6k0v_05b90PJWHm356o/edit?usp=s
hare_link&ouid=108428686044822817942&rtpof=true&sd=true

Query script :

https://docs.google.com/document/d/1b3TW79RGWs7riKzKoj7lXq5g99ACo65lMr_9s8LxRPs/e
dit?usp=share_link

Notebook:

https://colab.research.google.com/drive/1efluAM5QN20MAABGQm-agABL4yYMAS3j?usp=sharing

23
Thank You

24