Internet Application Development

Lab 07

Topic: Customer Segmentation and Development

Problem Statement

Refer to Lab 1 (Problem 2(i) and (iii)), you have to incorporate business intelligence in your order processing system by adding customer segmentation analysis. Customer segmentation is the process of dividing a company’s customer base into smaller, distinct groups that share similar characteristics, such as demographics, behaviors, or preferences. You are advised to do segmentation of customer behavior mainly considering purchase habits.

1. Define and describe customer segments of your own choice: e.g. Frequent Customer, Premium Customer
2. Draw a prototype interface on paper for segmentation analysis.
3. Write SQL queries to generate segmentation data.
4. Develop an interface in visual studio for segmentation analysis. Write code for a suitable handler which will execute queries developed in part (c) above and display segmented data to employees of the company?

Assumption: Sufficient numbers of orders are present in database.

How you can automate targeted marketing using above segments?

[Hint: For all royal customers send them a complimentary gift through courier and a message of thanks through email/sms]

Develop test cases for your segmentation analysis platform?

[Hints: (i) No customer in a particular segment (ii) Uneven distribution of customers across segments]