Case Study

EDA on E-commerce Customer Spending

EDA on E-commerce Customer Spending

This project is coming from an E-commerce company that sells clothing online. Besides selling online, the company also have in-store style and clothing advice sessions for their customers. Basically, customers come in to the store, having sessions/meeting with a personal stylist, then they can go home and order either on a mobile app or website for the clothes they want.

Here comes a business question. The company wants to know whether to focus their efforts on their mobile app experience or their website.

The objective of this project is conducting an Exploratory Data Analysis (EDA) based on a dataset provided to help the company to understand the factors that influence their customers to spend and where they should focus their efforts.

I have been given a dataset with 500 sample size and it contains 9 columns of data as follows:

1. Email: Email address
2. Address: Mailing address
3. Avatar: A graphical representation of a user
4. Avg. Session Length: Average time spent with personal stylist in minutes
5. Time on App: Average time spent on Mobile App in minutes
7. Time on Website: Average time spent on Website in minutes
8. Length of Membership: Number of years the customer has been a member
9. Yearly Amount Spent: Total customer spending in a year

These are some of the charts generated using Python to help better understand the data.

Besides EDA, regression analysis has also been performed to find out which input feature yields the highest coefficient of determination.

To answer the business question, here are my suggestions:

  1. The company should focus their efforts on mobile app experience because it is giving more returns to the company.
  2. They can make use of website to entice their customers to download and install the mobile app.
  3. Since Length of Membership is most effective in improving customer spending, the company should also work on how to serve their members better e.g. VIP or exclusive loyalty program.

If you are interested to know how I performed my case study on E-commerce Customer Spending, please check out my data works here.

Published by Lee Hong

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