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Learn Challenge: Segment Customers by Purchase Behavior | Marketing Data Analysis with Python
Python for Marketers

bookChallenge: Segment Customers by Purchase Behavior

Identifying high-value customers is a crucial step in designing effective marketing strategies. By understanding which customers contribute the most to revenue, you can focus your marketing efforts and resources on nurturing these relationships, creating personalized offers, and increasing overall customer loyalty. Segmenting your customer base also helps you tailor campaigns to different groups, ensuring that each segment receives relevant messaging and incentives. This approach leads to improved engagement, better return on investment, and a deeper understanding of your market.

Task

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Given a DataFrame containing customer IDs and their total purchase amounts, your goal is to categorize each customer into one of three segments based on purchase behavior and summarize the number of customers in each segment.

  • Categorize customers as "High Value" if their total purchase amount is 1000 or more.
  • Categorize customers as "Medium Value" if their total purchase amount is 500 or more but less than 1000.
  • Categorize customers as "Low Value" if their total purchase amount is less than 500.
  • Add a new column to the DataFrame indicating each customer's segment.
  • Return a summary DataFrame that shows the count of customers in each segment.

Solution

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Section 1. Chapter 5
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bookChallenge: Segment Customers by Purchase Behavior

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Identifying high-value customers is a crucial step in designing effective marketing strategies. By understanding which customers contribute the most to revenue, you can focus your marketing efforts and resources on nurturing these relationships, creating personalized offers, and increasing overall customer loyalty. Segmenting your customer base also helps you tailor campaigns to different groups, ensuring that each segment receives relevant messaging and incentives. This approach leads to improved engagement, better return on investment, and a deeper understanding of your market.

Task

Swipe to start coding

Given a DataFrame containing customer IDs and their total purchase amounts, your goal is to categorize each customer into one of three segments based on purchase behavior and summarize the number of customers in each segment.

  • Categorize customers as "High Value" if their total purchase amount is 1000 or more.
  • Categorize customers as "Medium Value" if their total purchase amount is 500 or more but less than 1000.
  • Categorize customers as "Low Value" if their total purchase amount is less than 500.
  • Add a new column to the DataFrame indicating each customer's segment.
  • Return a summary DataFrame that shows the count of customers in each segment.

Solution

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Everything was clear?

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Thanks for your feedback!

Section 1. Chapter 5
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