KPMG Virtual Internship - Presentation For Client - by - Dhruv Bhatia

Note: The data and information in this document is reflective of a hypothetical situation and client.
This document is to be used for KPMG Virtual Internship purposes only.
Sprocket
Central Pty Ltd
Data analytics approach
KPMG Virtual Internship – Dhruv Bhatia
Note: The data and information in this document is reflective of a hypothetical situation and client. This document is to be used for KPMG Virtual Internship purposes only.
Agenda
1. Introduction
2. Data Exploration
3. Model Development
4. Interpretation
Einführung
Identify & Recommending High Value Customers
● Outline of Problem ●Approach for Data Analysis
 Bike Related Purchases for last 3 years based on Gender ; Sub

 Sprocket Central is a company
Categorise – Age Group.
that specializes in high quality
bike and accessories.  Top Industries contributing the maximum profit and bike related
sales.
 The Marketing Team is looking to
boost sales.  Wealth Segment by Age Category.
 To target 1000 new customers  Number of Cars owned in each state.

that will bring the highest value
 Customer Classification.
to the business.
Data Exploration
Data Quality Assessment

Key issue dealt with for the data quality
issue:
Accuracy Completeness Consistency Currency Relevancy Validity
Customer D.O.B : Job Tittle : Gender : Deceased Default Column :
Demographic Inaccurate Blanks Inconsistent Customer : Delete
Age : Missing Customer ID : Status : Filtered out
Incomplete Inconsistent
Customer Customer ID :
Address Incomplete
Transactions Profit : Missing Customer ID : Cancelled Status List Price :

Incomplete Order : Filtered Format
Online Orders : Out Product Sold
Blank Date: Format
Brands: Blank
Data Exploration
Bike Related Purchases for last 3 years based on Gender ; Sub Categorise –
Age Group.
 Data shows age group 40-50 has high

count in terms of bike purchased in last
3 years within that Female ratio a bit
higher.
 But in totality Average Males have 1%

higher bike related purchases as
compare to Females in the last 3 years
Data Exploration
Top Job Industry Contributing to Maximum Profit & Bike Related

Purchases
 The top 3 industry sectors bringing in highest profit are : Financial Services ($ 18.98 lakhs) ; Manufacturing ($ 18.68 lakhs) ;
Health ($ 14.8 lakhs).
 These can be obvious as most of these industry sectors are based within the city or on the outskirts of the city therefore prefer
bikes for consuming.
 Most of the industry sectors have returned less than $ 1,000,000 in profits.
Data Exploration
Profit of Wealth Segment by Age Cluster
 Overall the Mass Customer Segmentation

makes the highest profit across different
age clusters.
 The Mass Customer aged between 40-50

are likely to bring more profit for the
company compared to other age clusters.
 This also indicates a trend of buying power,

as the buying power increases over time till
50 and then see’s a decline in buying
power, thus leading to lower profits.
Data Exploration
Number of Cars Owned in Each State
 Out of three states, New South

Wales, could be potential market
opportunities for the company.
 The New South Wales has the

highest potential as the number of
people that own car is almost
equal to the people who don’t
own cars which shows that there is
opportunity to find value
customers there.
Model Development
Customer Classification – Targeting High Value Customers
● These are the high value customers that should be targeted from the
new list:
 Who are currently living in New South Wales and Victoria.

 Aged between 40 – 50.
 Working in Financial Service, Manufacturing and Health.
 Most of the high value customers are female compared to male.
Interpretation
Summary Table for High Value Customers

● List of few customers that will come under the high value customer classification
Customer ID Bike Related Age Job Industry Wealth Segment Owns Cars State
Purchases for the
last 3 years
1842 445 44 Financial Services Mass Customer No New South Wales
2001 168 44 Manufacturing Mass Customer Yes New South Wales
650 486 44 Health Mass Customer No New South Wales
3297 234 46 Manufacturing Mass Customer No Victoria
50 266 41 Manufacturing Mass Customer Yes New South Wales

Model Development
Targeted marketing strategies using RFM-analysis
● RFM-analysis is a multi-dimensional scoring method focusing on the

following three parameters:
○ Recency (R) of a customer: Days since the last purchase.

○ Frequency (F) : Number of purchases, e.g., in 6 months.
○ Monetary (M) - The total turnover of a customer: Sum of sales, e.g.,
in 6 months.
Interpretation
Customer Profile Vs. Customer Value – RFM Analysis
 The Platinum Customers holds high

value as they have RFM value greater
than 411.
 Lot of customers are Platinum

Customers, and the company should
go for them because, they hold higher
customer value compared to all the
other customers.
THANK YOU

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Note: The data and information in this document is reflective of a hypothetical situation and client.

This document is to be used for KPMG Virtual Internship purposes only.

Identify & Recommending High Value Customers

● Outline of Problem ●Approach for Data Analysis

 Bike Related Purchases for last 3 years based on Gender ; Sub

 To target 1000 new customers  Number of Cars owned in each state.

Data Quality Assessment

Transactions Profit : Missing Customer ID : Cancelled Status List Price :

 Data shows age group 40-50 has high

 But in totality Average Males have 1%

Top Job Industry Contributing to Maximum Profit & Bike Related

Profit of Wealth Segment by Age Cluster

 Overall the Mass Customer Segmentation

 The Mass Customer aged between 40-50

 This also indicates a trend of buying power,

Number of Cars Owned in Each State

 Out of three states, New South

 The New South Wales has the

Customer Classification – Targeting High Value Customers

 Who are currently living in New South Wales and Victoria.

Summary Table for High Value Customers

1842 445 44 Financial Services Mass Customer No New South Wales

2001 168 44 Manufacturing Mass Customer Yes New South Wales

650 486 44 Health Mass Customer No New South Wales

3297 234 46 Manufacturing Mass Customer No Victoria

50 266 41 Manufacturing Mass Customer Yes New South Wales

Targeted marketing strategies using RFM-analysis

● RFM-analysis is a multi-dimensional scoring method focusing on the

○ Recency (R) of a customer: Days since the last purchase.

Customer Profile Vs. Customer Value – RFM Analysis

 The Platinum Customers holds high

 Lot of customers are Platinum

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