ABC Apparel is an e-commerce company that specializes in selling clothing and accessories online. The company operates through its online platform and uses Salesforce as its primary CRM system to manage customer data and sales activities. I was hired as a data analyst to conduct recency, frequency, and monetary (RFM) analysis to segment ABC Apparel’s customer base and gain insights into their purchase behaviors.
The main objective of the project was to identify ABC Apparel’s most valuable customers and improve the company’s customer retention and acquisition strategies. By conducting an RFM analysis, I aimed to segment the customer base based on purchase behaviors and identify patterns and trends to gain insights into customer preferences and behavior.
The RMF analysis was conducted in several phases, including the following:
- Categorization: The first step was to identify the e-commerce company’s assets and categorize them based on their importance and impact on the business. The assets included the Salesforce CRM system, Einstein for AI-powered analytics, and Tableau for data visualization.
- Threat identification: The second step was to identify the potential cybersecurity threats that could affect the company’s assets. The threats identified included data breaches, malware infections, phishing attacks, and insider threats.
- Risk assessment: The third step was to assess the risks associated with each threat identified in the previous step. The assessment considered the likelihood of the threat occurring, the impact it would have on the business, and the existing controls in place to mitigate the risk.
- Risk mitigation: Based on the results of the risk assessment, the fourth step was to develop a risk mitigation plan. This plan included recommendations for implementing additional controls to reduce the likelihood and impact of the identified risks.
To carry out the RFM analysis, I gathered customer information, purchase history, and order details from Salesforce and Einstein. I used Tableau as my data visualization tool to create interactive dashboards to visualize and analyze the data. Using the RFM model, I segmented ABC Apparel’s customer base into four groups based on their purchase behaviors:
- High-Value Customers: Customers who made purchases recently, frequently, and spent a significant amount of money on each order.
- Mid-Value Customers: Customers who made purchases within the last six months, spent an average amount of money on each order, and made purchases at a moderate frequency.
- Low-Value Customers: Customers who made purchases over six months ago, spent a small amount of money on each order, and made infrequent purchases.
- Lost Customers: Customers who have not made any purchases in the last year.
The data lake and reporting architecture have enabled Boeing to streamline data access, improve data quality, and gain insights into the product development process. The benefits include:
- Improved data quality: The centralized data lake ensures consistent and accurate data across the enterprise. The data quality is improved by identifying and fixing data issues during the data transformation process.
- Faster data access: The data lake enables faster access to data by reducing data latency and improving query performance. The data can be queried using different reporting tools, and the results are returned in seconds.
- Cost savings: The data lake and reporting architecture have reduced the cost of maintaining and managing the CAD and PLM data. The cloud-based architecture provides a scalable and cost-effective solution that reduces the need for on-premise infrastructure.
- Insights into the product development process: The data analytics capabilities have enabled Boeing to gain insights into the product development process. The analytics includes trend analysis, root cause analysis, and predictive modeling. These insights help the company to improve its design, manufacturing, and testing processes.
The RFM analysis provided ABC Apparel with valuable insights into its customer base’s purchase behaviors and helped the company identify its most valuable customers. By focusing on its High-Value Customers, ABC Apparel was able to improve customer retention and acquisition strategies and increase its revenue. The success of the project demonstrated the importance of data analysis in business decision-making and showcased my skills as a data analyst.