Course Project MISM 6212: Data Mining and Machine Learning For Business
Pet Food Customer Orders Online
Our goal is to analyze customer purchase history to identify trends and patterns influenced by pets' characteristics when purchasing relative food products. This analysis will help the platform make informed business decisions, enhance product recommendations, and develop effective strategies to increase sales and revenue.
Data Source
49042 rows and 36 columns
Various types of data related to customers, pets, and pet food orders, including customer and pet ID, order numbers, subscription status, food preferences, health issues, web session activity, and other historical information
Data Pre-processing
Use describe(), info() to see overview of the dataset.
Check for duplicates, missing, and null values.
With specified value
With mean value
With mode value
With blanks
Convert several numeric variables to categorical variables for the later use
Drop irrelevant columns
Deal with timestamp columns
Parse and format dates in UTC
Extract year and month for future use
Convert several columns into correct data type, etc.
Popular items: Chicken, Beef, Chicken Lamp, Fish
Recommendation:
Increase marketing efforts to drive sales.
Expand flavor offerings for broader customer appeal and capture more market share.
Monitor inventory levels to avoid stockouts and customer dissatisfaction.
Offer promotions and discounts to incentivize customers to buy existing and new flavors.
Product Analysis
Small breed pets: Generally prefer super premium food > mid-tier food > premium food.
Medium, large, and toy breed pets: Prefer super premium food > premium food > mid-tier food.
Recommendation:
Businesses should consider these preferences when developing and marketing pet food products for different breed sizes.
Focus on super premium options for medium, large, and toy breeds, while offering a balanced range of options for small breeds.
Tailor marketing strategies to highlight the specific benefits of each food type for different breed sizes.
Order distribution across months: Jan > Feb > Dec > Mar
Possible influencing factors on customer behavior:
Holidays and events: New Year's resolutions may boost orders in January, while holiday gift-giving might impact December.
Weather patterns: Colder months could lead to increased wet food orders.
Pet appetite and hydration: Pets may eat more during colder months and may not drink as much water, making wet food more appealing.
Recommendation:
Adjust inventory: Prepare for potential increased demand during colder months, especially for wet food products.
Promotions: Offer promotions or highlight wet food options during colder months to encourage more sales.
Marketing strategies: Emphasize the benefits of wet food, such as added moisture, hydration, and warmth, during colder periods.
Monitor trends: Keep an eye on customer behavior during specific holidays and colder months to adapt strategies accordingly.
Weather-related campaigns: Consider running weather-related marketing campaigns, focusing on the comfort and health benefits of wet food during colder seasons.
Subscription Analysis
Churn Rate (32.9%): The number of unsubscribed customers divided by the total number of customers.
Renewal Rate (67.1%): The number of subscribed customers divided by the total number of customers.
The relationship between Subscription and other factors
Correlation Matrix
RandomForestClassifier to Select Key Features
The relationships between key factors and subscription
Focus on popular flavors like 'Chicken' and 'Beef, Chicken, Lamb.'
Improve quality and variety of 'Chicken' products.
Introduce new flavors inspired by popular combinations.
Gather customer feedback and conduct market research for better insights.
The count of subscription status by pet flavour list
Develop seasonal promotions & incentives:
Capitalize on trends (April lowest, Jan-Mar differences).
Offer discounts on multi-month plans.
Limited-time deals on popular flavors.
Tailored marketing for each season.
Monitor & adjust based on customer response.
Total Pet Orders per Month by Subscription Status
Analyze customer and pet data to identify patterns.
Group customers based on behavior, preferences, and needs.
Personalize the customer experience for each segment.
Optimize product offerings based on segmented insights.
Improve marketing effectiveness and customer satisfaction.
