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Presented by: Maria Weese* Farmer School of Business

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1 Customer Behavior Outside 4 Walls: A Business Analytics Practicum Project Using JMP
Presented by: Maria Weese* Farmer School of Business Miami University, Oxford OH Transaction Amount Throughout Day by Merchant Abstract Increased spending at Grocery Competition The goal was to help this client better understand their customer value.  For example, a retailer could consider a customer to be loyal for spending a few hundred dollars a month at their store not knowing that the same customer is spending thousands of dollars at a competitor’s store.  The students developed several graphical displays to aid this client in understanding . Store 98 vs. Top Two Competitors Top 100 Customers for store 98 Data 5 million credit card transactions of customers of store 98 categorized into the following: Grocery, Restaurant, Gas&Fuel, Department Store, Pharmacy and Other. Transaction amount (dollars) Date and time of transaction Specific store location and merchant identifier. Truncated latitude and longitude of each store. Please click graphs for conclusions and expanded view. 

2 Customer Behavior Outside 4 Walls: A Business Analytics Practicum Project Using JMP
Presented by: Maria Weese* Farmer School of Business Miami University, Oxford OH Highest speeding Customer Activity Grocery Customer Segmentations Conclusions Spend/Frequency Segments Big Spender - Top 10% of customers based on total spend at Merchant 98 Average spend over varying time periods (day, week, month) have different trends, but the trends within each time period against competitors are similar Majority of customers who spend more than $5000 on groceries at store 98 are in D.C., generally spend between $25 and $250 each trip, and shop at multiple grocery stores (both in D.C. and in the suburbs). Focus on location, rather than expanded hours to increase revenue Transactions > $400 Possible New Locations for Store 98 *Authors Chris Bailo Nathan Brinling Christian Cook Maggie McGrath Ryan McHenry Jenifer Reitz Jason Su Miranda Welch Tom Weseli

3 Overlapping bubbles indicate areas where competitors stores are located closely and indicate possible loss of market share. Click Here to Return

4 We see a gradual increase in spending at grocery competition.
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5 The amount to gain from expanded hours is not enough to pursue.
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6 Similar trends throughout day for each grocer.
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7 The top quartile is the only group that spends more at Merchant 98 compared to other grocers
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8 Top 100 customers Average spend by Time and Top Grocer.
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9 Top 100 customers at Grocer, bubbles sized buy transaction amount
Top 100 customers at Grocer, bubbles sized buy transaction amount. There are several overlapping/near competitive locations. Click Here to Return

10 4 We know these “Big Spender” shoppers spend a lot of money at Merchant 98, but at which locations? Click Here to Return

11 Large transactions are taking place primarily in the DC area.
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