Targeted Advertising on identified key segments to maximize customer retention

• Tech Stack: R, Python, scikit-learn, mlxtend, apriori, caret
• Github URL: Project Link

Identify focus groups using RFM analysis to understand which customer segments are most likely to be swayed by Targeted Advertising to maximize customer growth and retention.

Approach

Step-1: Segmenting customers on the basis of Recency,Frequency and Monetary Value to identify important segments and examine transition

Step-2: Predicting probability that the customer will purchase in the next quarter using RFM and segment information via logit model (logistic regression)

Step-3: Identifying focus groups based on purchase probabilities for targeted advertisements using market basket analysis