Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Task 2: Customer-Level Analysis Using the clean dataset generated in the last step of Task 1, calculate the following metrics for each individual customer, then

Task 2: Customer-Level Analysis Using the "clean" dataset generated in the last step of Task 1, calculate the following metrics for each individual customer, then report the average across all customers. Do not round when calculating metrics for each individual customer, but rather round your final answer after averaging across customers.?

1. Average Purchase Amount (APA) = Total revenue from the customer within a given time period / number of purchase transactions made by the customer in the same time period [Use the last three fiscal years in the dataset as the time period. After averaging across customers, round final answer to the nearest whole dollar.]?

?

2. Annual Purchase Frequency (APF) = Number of times the customer makes a purchase each year [Use the average number of purchases made annually by each customer over the last three fiscal years in the dataset. After averaging across customers, round final answer to two decimal places.]?

?

3. Customer Lifetime Revenue (CLR) = Average Purchase Amount * Annual Purchase Frequency * Customer Longevity (number of years the customer is expected to actively contribute to revenue?assume that historical data shows this to be 9 years on average and use this assumption for all customers) [Use the raw (not rounded) values calculated in the earlier two steps as inputs into this calculation. After averaging across customers, round final answer to the nearest whole dollar.]?

?

4. Share of Wallet (SOW) = Spend with this retailer / total spend in category [For both inputs, use self-reported survey data of customers who made a purchase within the last three fiscal years in the dataset. Make SOW a missing value if total spend in the category for the customer is $0. After averaging across customers, round percentage to two decimal places in your final answer (x.xx%); use Excel to adjust decimal places and type whatever appears in the cell when two decimals are displayed]?

?

HINT: if you've completed this task properly, you should have calculated customer-level metrics for 1,050 customers and then averaged across these customers to report your final answer for each metric.

?

image

TransID PurchDate PurchAmount CardID CardDate S_Date S_RetSpend S_CatSpend Outliers DX20MS04 16-Jan-19 192.32 161735 29-Jun-18 8-Jun-20 140 175 FALSE EO33LL36 31-Jan-19 236.16 161735 29-Jun-18 8-Jun-20 140 175 FALSE GL92C195 1-Aug-19 135.76 161735 29-Jun-18 8-Jun-20 140 175 FALSE HP66BD58 10-Jun-20 159.8 161735 29-Jun-18 8-Jun-20 140 175 FALSE JE86UG62 3-Feb-19 247.47 161735 29-Jun-18 8-Jun-20 140 175 FALSE KL28RA76 9-Nov-18 115.96 161735 29-Jun-18 8-Jun-20 140 175 FALSE OA51FE21 29-Nov-19 111.72 161735 29-Jun-18 8-Jun-20 140 175 FALSE OJ48SF35 24-Jun-20 234.75 161735 29-Jun-18 8-Jun-20 140 175 FALSE 0 SF72QU49 2-Jun-19 162.63 161735 29-Jun-18 8-Jun-20 140 175 FALSE 1 SN21UA22 11-Oct-19 42.42 161735 29-Jun-18 8-Jun-20 140 175 FALSE 2 TJ77DA47 7-May-20 135.8 161735 29-Jun-18 8-Jun-20 140 175 FALSE 8 TR01XI19 26-Feb-19 227.68 161735 29-Jun-18 8-Jun-20 140 175 FALSE 4 VD79BR75 6-Jan-19 169.7 161735 29-Jun-18 8-Jun-20 140 175 FALSE 5 XB74NV99 6-Jun-20 67.88 161735 29-Jun-18 8-Jun-20 140 175 FALSE 5 YR171153 28-Nov-18 84.85 161735 29-Jun-18 8-Jun-20 140 175 FALSE 7 ZP70EL66 3-Apr-19 33.94 161735 29-Jun-18 8-Jun-20 140 175 FALSE 8 ZS02HX87 30-Mar-19 67.88 161735 29-Jun-18 8-Jun-20 140 CX14YV62 IG09XQ83 24-Feb-20 88.38 184989 15-Oct-19 8-Jun-20 50 2500 175 FALSE FALSE 14-Feb-20 78.79 184989 15-Oct-19 8-Jun-20 50 2500 FALSE 1 UX63XQ32 21-Apr-20 43.94 184989 15-Oct-19 8-Jun-20 50 2500 FALSE 2 XS44UG15 24-Nov-19 12.63 184989 15-Oct-19 8-Jun-20 50 2500 FALSE 8 FJ68KK18 9-Feb-20 444.63 219993 27-Jan-20 15-Jun-20 0 0 FALSE 4 MM92QD57 30-Jan-20 367.38 219993 27-Jan-20 15-Jun-20 0 0 FALSE 5 PM310V73 7-Jun-20 568.61 219993 6 SZ95IV54 26-Apr-20 147.84 219993 7 XA48QJ13 1-Feb-20 712.54 219993 B XV34EQ31 15-Mar-20 812.56 219993 27-Jan-20 15-Jun-20 27-Jan-20 15-Jun-20 27-Jan-20 15-Jun-20 27-Jan-20 15-Jun-20 ooo 0 0 FALSE 0 0 FALSE 0 0 FALSE 0 0 FALSE

Step by Step Solution

3.48 Rating (148 Votes )

There are 3 Steps involved in it

Step: 1

Answer To calculate the metrics for each individual customer and then report the average across all customers we will follow the steps provided using the given dataset Lets assume that we have already ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting and Reporting a Global Perspective

Authors: Michel Lebas, Herve Stolowy, Yuan Ding

4th edition

978-1408066621, 1408066629, 1408076861, 978-1408076866

More Books

Students also viewed these Finance questions