Customer Segmentation Analysis

Michael Olaniyi Jeremiah
Sep 17, 2024
3 min read

Updated: Aug 15

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Technology:

Excel
Power Pivot
Power Query

Overview

This dataset provides comprehensive customer data suitable for segmentation analysis. It includes anonymized demographic, transactional, and behavioral attributes, allowing for detailed exploration of customer segments. Leveraging this dataset, marketers, data scientists, and business analysts can uncover valuable insights to optimize targeted marketing strategies and enhance customer engagement. Whether you're looking to understand customer behavior or improve campaign effectiveness, this dataset offers a rich resource for actionable insights and informed decision-making.

Key Features:

Anonymized demographic, transactional, and behavioural data.
Suitable for customer segmentation analysis.
Opportunities to optimize targeted marketing strategies.
Valuable insights for improving campaign effectiveness.
Ideal for marketers, data scientists, and business analysts.

Key Analysis:

Segmenting customers based on demographic attributes.
Analyzing purchase behaviour to identify high-value customer segments.
Optimizing marketing campaigns for targeted engagement.
Understanding customer preferences and tailoring product offerings accordingly.
Evaluating the effectiveness of marketing strategies and iterating for improvement.
Explore this dataset to unlock actionable insights and drive success in your marketing initiatives!

Analysis Findings:

The segment analysis indicates that the first quarter of 2018 saw the highest volume of premium policy purchases, totalling ₹ 7,803,178, while the second quarter had the lowest, amounting to ₹ 5,942,936.
Salespersons, followed by Entrepreneurs, accounted for the highest premium policy purchases, with ₹ 24,247,490 and ₹ 20,548,935 respectively.
Within the Education segment, customers holding Associate Degrees made the most premium policy purchases, totalling ₹ 37,384,804, followed by those with Doctorate Degrees, totalling ₹ 36,458,142.
Male customers dominated premium policy purchases, representing 51% of the total policy amount, with ₹ 82,115,032 in purchases.
Despite being the smallest Island and City, Lakshadweep had the highest number of premium customers, with 2,109 policies purchased, totalling ₹ 6,505,855, followed by Himachal Pradesh with 1,963 customers and ₹ 5,837,424 in purchases.
Analysis of Occupation income levels and premium amounts reveals that Salesperson professionals earn the highest salaries and also lead in premium policy purchases.
Customers predominantly interact through chat, although they prefer post mail and email as communication channels, and weekends as the preferred time for contact. Additionally, German followed by French are the most preferred languages.
Customers with Policy1 exhibit behaviors predominantly associated with Policy3.
A significant portion of premium policy patronage is attributed to customers within the age range of 51 to 70 years.

Recommendations:

It is advisable to prioritize the SalesPerson occupation segment across all cities, as sales professionals often seek insurance coverage for their products to mitigate unforeseen risks.
Consider targeting SalesPersons in cities with larger populations to tap into a potentially lucrative market segment.
To expand the customer base and increase sales revenue, offer insurance product discounts to Artists, Doctors, Teachers, Engineers, Managers, and Lawyers.
Provide policy discounts to Widowed, Separated, and Divorced individuals to enhance customer satisfaction and retention.
Utilize strategic segmented email marketing, focusing on preferred languages such as German, English, and Spanish, to generate leads effectively, given customers' preference for post mail and email communication channels.
Schedule customer contact times strategically, particularly on weekends, with a preference for Saturday and Sunday mornings, to maximize engagement.
Implement targeted promotional efforts, such as discounts or promos, for Family, Business, and Individual Policy types to stimulate sales growth and bolster policy uptake.