KIRTESH TIWARI

PGP - DATA SCIENCE AND BUSINESS ANALYTICS . PGPDSBA ONLINE SEP_C 2021

TIWARI.KIRTESH@GMAIL.COM

MRA PROJECT
MILESTONE 1
 AGENDA

Inferences from
Exploratory Customer
RFM Analysis and
Analysis and Segmentation
identified
Inferences using RFM analysis
segments
 PROBLEM STATEMENT

An automobile parts Agenda & Executive Exploratory Analysis Customer Inferences from RFM
manufacturing Summary of the data and Inferences Segmentation using Analysis and identified
company has collected RFM analysis (make segments
data of transactions for 4 segments)
3 years. They do not
have any in-house data
science team, thus they
Contents of the presentation Univariate, Bivariate, and Which tool used? Who are your best customers?
have hired you as their multivariate analysis using (give at least 5)
Problem statement What all parameters used and
consultant. Your job is data visualization
About Data (Info, Shape, assumptions made Which customers are on the
to use your magical • Weekly, Monthly, Quarterly, verge of churning? (give at
Summary Stats, your Output table head 
data science skills to Yearly Trends in Sales least 5)
assumptions about data) If KNIME used, Workflow
• Sales Across different
provide them with Categories of different image to be put Who are your lost customers?
suitable insights about features in the given data (give at least 5)
their data and their Summarize the inferences Who are your loyal customers?
from the above analysis (give at least 5)
customers.
 DATA HEAD

• Data has 2747 rows and 20 columns

 NULL INFORMATION OF DATA

• There is no null value present in the data

 DATA SET INFO

• Data set has 5 int64, 2 float 64 , 1 datetime 64,

and 12 object type columns.
 DATA SET SUMMARY

• Mean for the quantityordered is 35 with

std of 9 which means on an average in
one order customer is ordering 35 item
• MSRP has mean of 100 with std of 40
• Price of Each item has mean of 101 with
std of 42
• Overall Sales mean is 3553 with std of
1838 which mean customer is buying
bulk quantity
 DATA ASSUMPTIONS

• My Assumptions are as below :

• Data set is a Random sample
• Data is independent
• Data have a normal distribution, equal variance, stability
• measurement system is accurate and precise
EDA

• Exploratory Analysis and Inferences

• Univariate, Bivariate, and multivariate analysis using data visualization
• Weekly, Monthly, Quarterly, Yearly Trends in Sales
• Sales Across different Categories of different features in the given data

• Summarize the inferences from the above analysis

 EDA

• Classic Cars auto part has highest numbest number of

order followed by Vintage Car
 EDA

• Most number of order is shipped, though there are

few disputed and cancelled order too.
 EDA

• Maximum number of orders are coming from USA

followed by Spain and France
 EDA

• Highest orders are from Deal Size Medium and lowest

from Large
 EDA

• Highest Sales making countries are

USA ,France and Spain
 EDA

• Median sales is highest for Classic

Cars and Trucks and Buses but
Vintage cars has many outliers
present which means sales
amount is higher for vintage cars
 EDA

• Looks like maximum sales are of range 2000 to

4000
 EDA

• Classic cars sales amount is higher for all Deal Size

followed by Vintage Cars
 EDA

• Maximum Orders are coming from

USA for all type of Deal Sizes
 EDA

• All most every order for all the product

type is shipped there are few orders
which are disputed and cancelled
 SALES ACROSS DIFFERENT CATEGORY AND
FEATURES

• Maximum sales is coming from Classic

car followed by Trucks and Buses
 SALES ACROSS DIFFERENT CATEGORY AND
FEATURES

• Maximum Sales is coming from Large

deals
 SALES ACROSS DIFFERENT CATEGORY AND
FEATURES

• Mean sales is higher for Denmark and

Switzerland
 SALES ACROSS DIFFERENT CATEGORY AND
FEATURES

• Classic Cars mean sales is higher for

Japan, Ireland , Belgium and Denmark
• Motorcycles means sales is higher for
Austria, Sweden, UK and Spain
• Trucks and Buses mean sales is higher
for Germany, Denmark , Japan and
Singapore
 SALES ACROSS DIFFERENT CATEGORY AND
FEATURES

• Mean sales is higher for Large deal size

for each and every country followed by
Medium and Small
 SALES ACROSS DIFFERENT CATEGORY AND
FEATURES

• Highest mean sales dispute is for

Classic Cars and Motorcycles
• Orders of Approx. mean sales of
4000 is on hold for all category
of product line
 SALES ACROSS DIFFERENT CATEGORY AND
FEATURES

• Order of mean sales of 8000 is

disputed in Denmark and
Sweden.
• Order of approx. mean sales of
4000 got cancelled from UK, Spain
and Sweden
 EDA SALES TREND -YEARLY

From sales trend we see from 2018 to 2019

sales increased but from 2019 to 2020 it decreased
sharply

https://public.tableau.com/app/profile/kirtesh.tiwari/
viz/KirteshRFM1/Weekly#1
 EDA SALES TREND –QUARTERLY

Quarterly sales trend increasing in 2018

and 2019 but decreasing in 2020

https://public.tableau.com/app/profile/
kirtesh.tiwari/viz/KirteshRFM1/Weekly#1
 EDA SALES TREND -MONTHLY

Monthly Trends shows that both in 2018 and

2019 sales is increasing sharply in NOV
month and then decrease in dec

https://public.tableau.com/app/profile/
kirtesh.tiwari/viz/KirteshRFM1/Weekly#1
 EDA SALES TREND – WEEKLY

Week no 43 50 47 have seasonality and

increasing sharply apart from these weeks
sales is almost similar.

https://public.tableau.com/app/profile/
kirtesh.tiwari/viz/KirteshRFM1/Weekly#1
 EDA SUMMARY

• Classic Cars mean sales is higher for Japan, Ireland , Belgium and Denmark
• Motorcycles means sales is higher for Austria, Sweden , UK and Spain
• Trucks and Buses mean sales is higher for Germany , Denmark , Japan and Singapore
• From sales trend we see from 2018 to 2019
• sales increased but from 2019 to 2020 it decreased sharply
• Maximum sales is coming from Classic car followed by Trucks and Buses
RFM STARTS

• Customer Segmentation using RFM analysis (make 4 segments)Which tool used?

• What all parameters used and assumptions made
• Output table head 
• If KNIME used, Workflow image to be put
 WHAT IS RFM

• RFM analysis is a marketing technique used to quantitatively rank and group customers based on the recency,
frequency and monetary total of their recent transactions to identify the best customers and perform targeted
marketing campaigns.
• I am using KNIME tool for RFM analysis
 WHAT ALL PARAMETERS USED

• For RFM analysis I have grouped data by CUSTOMERNAME

• Below listed column aggregated
• ORDERNUMBER ,QUANTITYORDERED, PRICEEACH, ORDERLINENUMBER, SALES, ORDERDATE, PRODUCTLINE

• For Monterey SALES column is used

• For Frequency QUANTITYORDERED is used
• For Recency [Max(order date) - order date)]“ is used
 ASSUMPTIONS MADE

• Very High Recency, Very High Monitory and Very High Frequency is Best customer
• High Recency ,Very High and High Frequency and Very high and High Monitory is Loyal customer
• Low Recency, Low Frequency and Medium and Medium Monitory is Lost customer
• Medium Regency ,Medium and Low Frequency and Very High Monitory is Verge of Churning customer
OUTPUT TABLE HEAD
KNIME WORKFLOW
RFM

• Inferences from RFM Analysis and identified segments

• Who are your best customers? (give at least 5)
• Which customers are on the verge of churning? (give at least 5)
• Who are your lost customers? (give at least 5)
• Who are your loyal customers? (give at least 5)
 BEST CUSTOMERS

CUSTOMERNAME
Euro Shopping Channel
La Rochelle Gifts
Mini Gifts Distributors Ltd.
Souveniers And Things Co. Very High Recency, Very High Monitory and
Salzburg Collectables
Very High Frequency is Best customer
L'ordine Souveniers
The Sharp Gifts Warehouse
Danish Wholesale Imports
Reims Collectables
 VERGE OF CHURNING CUSTOMERS

CUSTOMERNAME

AV Stores, Co.

Rovelli Gifts Medium Regency ,Medium and Low Frequency and

Very High Monitory is Verge of Churning customer
Online Diecast Creations Co.

Land of Toys Inc.

Corrida Auto Replicas, Ltd

 LOST CUSTOMERS

CUSTOMERNAME
Double Decker Gift Stores, Ltd
West Coast Collectables Co.
Signal Collectibles Ltd.
CAF Imports Low Recency, Low Frequency and Medium
Cambridge Collectables Co.
and Medium Monitory is Lost customer
Online Mini Collectables
Bavarian Collectables Imports, Co.
Clover Collections, Co.
Iberia Gift Imports, Corp.
Auto Assoc. & Cie.
 LOYAL CUSTOMERS

CUSTOMERNAME

Technics Stores Inc.

Scandinavian Gift Ideas

High Recency ,Very High and High Frequency and
Muscle Machine Inc Very high and High Monitory is Loyal customer

Anna's Decorations, Ltd

Dragon Souveniers, Ltd.

Australian Collectors, Co.

Thank You