Lab 07: Problem Statement
Topic: Customer Segmentation and Business Intelligence
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
- Define and describe customer segments of your own choice (e.g., Frequent Customer, Premium Customer).
- Draw a prototype interface for segmentation analysis.
- Write SQL queries to generate segmentation data.
- Develop an interface in Visual Studio for segmentation analysis. Write code for a suitable handler which will execute queries developed in part (c) above and display segmented data to employees of the company.
Assumption: Sufficient numbers of orders are present in the database to allow for meaningful segmentation.
How can you automate targeted marketing using the above segments?
Hint: For all royal / premium customers, send them a complimentary gift through courier and a message of thanks through email/sms.
Develop comprehensive test cases for your segmentation analysis platform.
Hints: (i) Handling cases with no customers in a particular segment. (ii) Managing uneven distribution of customers across segments. (iii) Database connectivity timeouts during heavy aggregation.
