CUSTOMER PURCHASE ANALYSIS: MARKETING STRATEGY FOR AN ONLINE GROCERY STORE

OBJECTIVE

Instacart would like to uncover more information about their sales patterns. Perform initial and exploratory data analysis of some of their orders to derive insights and suggest strategies for better segmentation of their user base

DATA

‘The Instacart Online Grocery Shopping Dataset 2017′ via Kaggle on 28/10/23
Along with Customer Data fabricated by CareerFoundry for the purpose of this project

SKILLS & TOOLS

Python
Data wrangling
Data merging
Deriving variables
Grouping data
Aggregating Population flows PII procedures

ANALYSIS

DEPARTMENTS FREQUENCY

Based on the results of the analysis, we can: Focus on high-popularity departments: those departments were found to be the most popular among customers, making them ideal for promoting products and increasing sales.

CONNECTION BETWEEN FAMILY STATUS AND SPENDING

There is a significant correlation between age, marital status and ordering patterns, with these demographics consistently representing the majority of our customer base. Given this valuable insight, a strategic business approach can include tailoring marketing initiatives to the distinct preferences and needs of these key segments.

To increase sales, consider offering special deals and packages that align with what families and young adults prefer to buy. Also, try to recommend complementary products that go well together and offer discounts on weekends when most people shop. This way, you can make more sales and keep customers satisfied.

RECOMMENDATIONS

Strategic advertising planning: Schedule your ads for quieter hours, focusing on Tuesday through Thursday to maximize visibility and engagement when order volume is lower.

Promotions and special offers: Introduce promotions or special offers during specific peak hours (Friday through Monday, 10:00 to 15:00) to take advantage of high customer activity and drive additional sales.

Targeted marketing: Run targeted marketing campaigns on the busiest days and hours, focusing on promotions to increase customer engagement and drive sales during peak periods.