Problem Statement of Lab 07

Problem 1

Refer to Lab 1 (Problem 2(i) and (iii)), you have to incorporate business intelligence in your order processing system by adding customer segmentation analysis.

Customer segmentation is the process of dividing a company's customer base into smaller, distinct groups that share similar characteristics, such as demographics, behaviors, or preferences.

You are advised to do segmentation of customer behavior mainly considering purchase habits.

Suggested Methodology

Assumption: Sufficient numbers of orders are present in database.

Problem 2

How you can automate targeted marketing using above segments?

Hint: For all royal customers send them a complimentary gift through courier and a message of thanks through email/sms.

Problem 3

Develop test cases for your segmentation analysis platform.

Hints:
THRESHOLD
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