Assignment task:
The NAB supermarket is offering a new line of organic products. The supermarket's management wants to determine which customers are likely to purchase these products. The supermarket has a customer loyalty program. As an initial buyer incentive plan, the supermarket provided coupons for the organic products to all of the loyalty program participants and collected data that includes whether these customers purchased any of the organic products.
The business problem is to identify the customers that are most likely to buy organic products in the supermarket. A data models will be built data set (organics.xls) collected during the supermarket incentive period. By identifying who are to purchase organic products the company will be able to target its marketing efforts more effectively which should result in more sales per marketing advertising spend.
Explore:
- Explore the raw data as provided. This will result in a brief overview of the variables so that they can be classified as qualitative data (binary, nominal, ordinal), or quantitative data (discrete, interval) with a brief description.
- Clean and prepare data to transform it into suitable variables.
- Establish a Target variable (which variable can be used to establish the required results).
Models:
- Perform descriptive statistics and correlation analysis to presents the business problem.
- Identify patterns relationships and variables that can predict the target variable.
- Identify the business problem or opportunity.
- Identify marketing initiative driven by the model, eg targeted marketing offer.
- In summarising the results from the models generated arrive at a conclusion, and make recommendations for future data gathering by the business