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Pelican Stores recently completed a promotional campaign that included discount coupons for new customers.

One day during the promotional campaign, data was collected. This 100customer sample of in-store credit card transactions contains seven variables that describe the customer and transaction. These variables include Type of Customer, Number of Items Sold, Net Sales, Method of Payment, Gender, Marital Status, and Age. National Clothing, the owner of Pelican Stores, is seeking a measurement of this campaigns effects on the sales of the store as well as an updated customer profile through an analysis of this data. By evaluating the effectiveness of this campaign, National Clothing will be able to develop new initiatives within the Pelican Stores division that will be even more successful. In addition, the valuable data collected in order to create a customer profile will help the company to better tailor its products and services for its current consumer base and intended target market. In the end, Pelican Stores hopes to increase current customers purchases while developing loyalty with the new customers who were brought in through the promotional campaign. Pelican Stores has an overwhelming majority of female customers with only 7% of their customers being male and 84% of their patrons married (Table 1). Since the store is a womens apparel chain, it makes sense that 93% of their customers are women (Table 2). When looking at the customers ages, 63% are between the ages of 29 and 49. This shows that Pelican Stores has a fairly young customer base, but still appeals to middle-aged women with 16% of their customers between 49 and 59 years old. (Table 3) The mean age of their customers is 43 years (DS 1). Analysis of the type of transaction shows that 70% of customers pay with a National Clothing charge card (Proprietary Card). The next two closest forms of payment were MasterCard and Visa, making up 14 and 10 percent of transactions, respectively. The least used form of payment, an American Express card, was only used for 2% of transactions. (Pie Chart 1, Table 4) Sales ranged from $13.23 to $287.59, but 71% of sales were less than or equal to $90 (Table 5).

McBride 2 The average number of items sold per transaction was 3.22, and 74% of customers purchased 6 or less items every transaction (DS 2, Table 6). When looking at net sales in relation to other variables, it becomes apparent that married customers spend more than single customers and female more than male (DS 3, 4). With a .916 correlation, age and sales are statistically correlated and 4959 year olds spend the most money, on average, at Pelican Stores (DS 5, 6). American Express processed, on average, the most expensive transactions (DS 8). Promotional customers accounted for 70% of the transactions, an overwhelming majority (Table 7). In addition, promotional customers spent more, since the median net sales for regular customers is $12.43 lower (DS 7). When examining methods of payment, the most utilized form for promotional customers was the National Clothing charge card, being used in 81.43% of promotional transactions. In contrast, only 43.33% of regular customers used the charge card during their transaction (DS 9). More promotional customers are responsible for large transactions considering 6 people spent more than $183, while no regular customers spent more than that (DS 7). The data not only gives an accurate portrayal of the customer base, but also proves that the promotional campaign was very successful. Particularly noticeable is that fact that most promotional customers used the National Clothing charge card, meaning that they came from other chains to try Pelican Stores. This is a good source of new customers for Pelican Stores because they are already loyal to other chains that are part of the National Clothing family. Collecting data on a greater number of customers will help the company generate an even more reliable customer profile. Conducting a study on customer loyalty would be effective in determining the long term success of the promotional campaign, allowing Pelican Stores to measure how often customers return to the store.

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