Customer Purchase Analysis
behavior analysis to identify key insights
Data Overview
This data contains electronic sales transactions over a one-year period, from September 2023 to September 2024.
It includes detailed information about customer demographics, product types, and purchase behaviors.
Objectives:
- Identify Sales Trends
- Define Product Performance
- Find Loyalty Program Success and Failures
- Discover Key Customer Demographics
➡️ Jump straight to the insights 💡
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▶ Detailed code, analysis, and full findings are documented in this notebook.
Data Structure Overview:
The Electronic Sales Database contains both numeric and categorical data across four tables, capturing essential customer and transaction details.
- Customer - Customer demographics and membership info
- Product - Product SKU and type
- Order - Order information including status and payment info
- OrderLine - Products ordered including any Addons
Entity Relationship Diagram:
Total row count: 20,000 Records
Insights
1. Sales Performance
Total revenue from completed sales: $42,629,615.57.
Cancellation rate is 33%, which suggests deeper issues we need to identify.
Smartphones dominate our sales, accounting for 34% of total revenue, indicating strong market demand.
Revenue by Product Type:
Product Type | Total Revenue |
Smartphone | $14,407,835 |
Smartwatch | $9,398,591 |
Laptop | $8,365,905 |
Tablet | $7,722,632 |
Headphones | $2,734,651 |
2. Customer Demographics
Our products appeal to a broad age range (18-80 years). Gender distribution is relatively even for smartphones, but there’s a male preference for tablets and smartwatches.
Top Product Orders by Gender:
Product Type | Count |
Smartphone (Male) | 2998 |
Smartphone (Female) | 2980 |
Tablet (Male) | 2088 |
Smartwatch (Male) | 2033 |
Tablet (Female) | 2016 |
3. Loyalty Program Impact
Extended Warranty purchase rate is higher for Non-loyalty members.
This suggests we do not have enough benefits for loyalty members and should focus our loyalty efforts on extra benefits.
Average Order Value (AOV) by Loyalty Status:
Loyalty Status | AOV |
New Member | $3,237 |
Non Member | $3,193 |
Churned | $3,182 |
Regular Member | $3,092 |
4. Order Status and Seasonal Trends
Summer is our best season by far, doubling our Fall revenue. Further analysis needed on Fall and Winter shortcomings.
Sales peak in January 2024, with May 2024 close behind. Sales dip from September through December.
Seasonal Revenue:
Season | Total Revenue |
Summer | $13,305,374 |
Spring | $12,989,365 |
Winter | $9,723,550 |
Fall | $6,611,324 |
5. Add-ons and Shipping Impact
Orders without add-ons have a higher AOV:
Expedited shipping is the star of the show! Expedited has the lowest percentage of total orders but has the second highest revenue.
Expedited shipping has a $627 higher AOV than standard shipping.
AOV by Add-ons Purchased:
Add-ons Purchased | AOV |
No Add-ons | $3,199 |
With Add-ons | $3,083 |
6. Payment Methods and Customer Behavior
Credit cards and PayPal are equally popular. Bank transfers show a $500 higher average spend but also an 8% higher cancellation rate.
Impulse items are popular across most age groups. The 25-34 and 55-64 age groups purchase more accessories, while the 35-44 age group has the highest percentage of warranty add-ons.
✅ Recommendations
1. Revamp the Loyalty Program
Incentivize higher spending among regular members. Consider tiered benefits and additional warranty options.
2. Investigate Cancellation Rates
Focus on root causes of the high cancellation rate. Improve order fulfillment, product descriptions, and customer communication to reduce cancellations.
3. Targeted Marketing Campaigns
Develop campaigns for the fall and winter seasons, particularly for November and December, to align with typical retail high-sales periods.
4. Reassess Add-on Strategy
Personalize add-on offers based on customer purchase history and preferences.
5. Exclusive Benefits for Loyalty Members
Offer loyalty members exclusive benefits like free expedited shipping or discounted extended warranties.