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project-3-customer-loyalty-program's Introduction

Project 3: Customer Categorization

Background:

Categorize customers to help merchants to offer promotions or discounts to cardholders.

Focus:

  1. Uncover signal in customer loyalty to identify the most 'valuable' individuals.
  2. Create the right experience for customers. Provide specifically tailored promotions on most relevant merchant.

Data:

Data is available on Kaggle: link to Kaggle Competition.

All data is simulated and fictitious, and is not real customer data.

Data File Descriptions:
  • train.csv - the training set
  • test.csv - the test set
  • historical_transactions.csv - up to 3 months' worth of historical transactions for each card_id
  • merchants.csv - additional information about all merchants / merchant_ids in the dataset.
  • new_merchant_transactions.csv - two months' worth of data for each card_id containing ALL purchases that card_id made at merchant_ids that were not visited in the historical data.

Other Features:

Number of Observations: ~ 20 million

Features/ Predicting Variables: Around 30

Highlight of Key Features:
  • Card_id - prime key
  • Target_binned - loyalty category: good, bad, neutral
  • Month of first purchase
  • Authorized_flag - Y: Approved, N: Denied
  • Purchase_amount
  • State_id
  • Merchant_id

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