In this case study, we will apply the techniques and methods learned throughout the course to analyze a marketing dataset. The goal is to understand customer behavior, identify trends, and provide actionable insights to improve marketing strategies.

Objectives

  1. Understand the dataset: Familiarize yourself with the structure and contents of the marketing data.
  2. Data Cleaning: Identify and handle missing or inconsistent data.
  3. Exploratory Data Analysis (EDA): Use EDA techniques to uncover patterns and trends.
  4. Data Modeling: Apply appropriate statistical models to predict customer behavior.
  5. Model Evaluation: Evaluate the performance of the models.
  6. Communication of Results: Present the findings and insights in a clear and actionable manner.

Step 1: Understanding the Dataset

Dataset Description

The dataset contains information about customers and their interactions with marketing campaigns. The key columns include:

  • CustomerID: Unique identifier for each customer.
  • Age: Age of the customer.
  • Gender: Gender of the customer.
  • Income: Annual income of the customer.
  • SpendingScore: Score assigned based on customer spending behavior.
  • CampaignResponse: Response to the marketing campaign (1 for positive response, 0 for negative response).

Loading the Dataset

import pandas as pd

# Load the dataset
data = pd.read_csv('marketing_data.csv')

# Display the first few rows of the dataset
print(data.head())

Step 2: Data Cleaning

Handling Missing Data

Identify and handle missing values in the dataset.

# Check for missing values
print(data.isnull().sum())

# Fill missing values with the mean for numerical columns
data['Age'].fillna(data['Age'].mean(), inplace=True)
data['Income'].fillna(data['Income'].mean(), inplace=True)

# Drop rows with missing values in categorical columns
data.dropna(subset=['Gender'], inplace=True)

Handling Inconsistent Data

Ensure that the data is consistent and correctly formatted.

# Check for unique values in the Gender column
print(data['Gender'].unique())

# Standardize the Gender column
data['Gender'] = data['Gender'].str.capitalize()

Step 3: Exploratory Data Analysis (EDA)

Descriptive Statistics

Generate summary statistics to understand the distribution of the data.

# Summary statistics
print(data.describe())

Data Visualization

Visualize the data to identify patterns and trends.

import matplotlib.pyplot as plt
import seaborn as sns

# Age distribution
sns.histplot(data['Age'], bins=20, kde=True)
plt.title('Age Distribution')
plt.show()

# Income vs. Spending Score
sns.scatterplot(x='Income', y='SpendingScore', hue='Gender', data=data)
plt.title('Income vs. Spending Score')
plt.show()

Step 4: Data Modeling

Logistic Regression

Predict the campaign response using logistic regression.

from sklearn.model_selection import train_test_split
from sklearn.linear_model import LogisticRegression
from sklearn.metrics import accuracy_score, confusion_matrix

# Prepare the data
X = data[['Age', 'Income', 'SpendingScore']]
y = data['CampaignResponse']

# Split the data into training and testing sets
X_train, X_test, y_train, y_test = train_test_split(X, y, test_size=0.3, random_state=42)

# Train the model
model = LogisticRegression()
model.fit(X_train, y_train)

# Make predictions
y_pred = model.predict(X_test)

# Evaluate the model
accuracy = accuracy_score(y_test, y_pred)
conf_matrix = confusion_matrix(y_test, y_pred)

print(f'Accuracy: {accuracy}')
print(f'Confusion Matrix:\n{conf_matrix}')

Step 5: Model Evaluation

Evaluation Metrics

Evaluate the model using various metrics.

from sklearn.metrics import classification_report

# Classification report
report = classification_report(y_test, y_pred)
print(report)

Step 6: Communication of Results

Presenting Findings

Summarize the findings and provide actionable insights.

  • Customer Segmentation: Identify key customer segments based on age, income, and spending score.
  • Campaign Effectiveness: Evaluate the effectiveness of the marketing campaign and suggest improvements.
  • Targeted Marketing: Recommend targeted marketing strategies for different customer segments.

Visualization of Results

Create visualizations to support the findings.

# Confusion matrix heatmap
sns.heatmap(conf_matrix, annot=True, fmt='d', cmap='Blues')
plt.title('Confusion Matrix')
plt.xlabel('Predicted')
plt.ylabel('Actual')
plt.show()

Conclusion

In this case study, we applied data analysis techniques to a marketing dataset to uncover insights and improve marketing strategies. We covered data cleaning, exploratory data analysis, data modeling, and model evaluation. Finally, we communicated the results in a clear and actionable manner.

By completing this case study, you should now have a solid understanding of how to apply data analysis techniques to real-world marketing data and derive meaningful insights to support decision-making.

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