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Customer Segmentation & Marketing Channel Analysis

By performing in-depth customer segmentation and marketing channel analysis, I identified Facebook as the most effective marketing channel and uncovered significant customer behavior patterns through RFM analysis, provi...

Pillar: propulsion ยท Status: published

Economic Gravity

A mission focused on understanding how customer behavior and marketing channels generate commercial momentum through segmentation, attribution analysis, and conversion efficiency modeling.

Flight Plan

  • โ†’Analyze marketing attribution performance across acquisition channels
  • โ†’Measure conversion efficiency and customer interaction behavior
  • โ†’Perform RFM segmentation to classify customer value tiers
  • โ†’Identify high-value customer clusters for retention and upsell opportunities
  • โ†’Translate customer and channel intelligence into actionable BI dashboards
  • โ†’Simulate growth optimization using customer behavior patterns

Standard Equipment

  • โ†’PostgreSQL
  • โ†’SQL (CTE
  • โ†’aggregation
  • โ†’joins
  • โ†’window functions)
  • โ†’Power BI
  • โ†’CSV datasets (attribution.csv
  • โ†’superstore_orders.csv)
  • โ†’RFM methodology
  • โ†’Marketing attribution analysis
  • โ†’KPI monitoring framework
  • โ†’GitHub repository documentation

Analysis

Methodology:

Attribution Analysis

  • attribution_analysis.sql: This script analyzes the attribution data to:

  • Calculate total interactions and conversions per channel.

  • Determine conversion rates for each channel.

  • Calculate total and average conversion values.

  • Analyze customer session and conversion behavior.

  • Create summary tables for marketing channel performance and customer behavior.

RFM Analysis

  • rfm_analysis.sql: This script performs RFM

(Recency

Frequency

Monetary) analysis on the superstore orders data to segment customers. It includes steps to:

  • Calculate RFM values for each customer.

  • Assign RFM scores.

  • Create a final table with RFM scores and customer data.

  • Integrate RFM scores with superstore order detail.

Insights Summary

1. Facebook: The Most Effective Channel

  • Conversions: 1

996 | Total Conversion Value: 12.51K | Interactions: 67K

Facebook delivers the highest number of conversions and interactions across all channels

indicating that it is the most effective platform for driving user actions such as purchases or sign-ups. Its performance is consistently strong across both engagement and conversion metrics.

2. Paid Search: A Strong Contender

  • Conversions: 1

747 | Total Conversion Value: 10.82K | Interactions: 58K

Paid Search ranks second

demonstrating its strength in capturing high-intent traffic. The balance between conversions and interactions suggests this channel is highly effective for performance-driven campaigns.

3. Online Video: Solid Mid-Level Performance

  • Conversions: 1

301 | Total Conversion Value: 8.15K | Interactions: 43K

Video content remains a valuable channel for engagement and mid-funnel conversion. While it doesn't outperform Facebook or Paid Search

it contributes significantly to awareness and action.

4. Instagram and Online Display: Lowest Performance

  • Instagram: 868 conversions | 5.38K Conversion Value | 29K Interactions

  • Online Display: 816 conversions | 4.99K Conversion Value | 28K Interactions

These channels show the lowest conversion and engagement rates. This may be due to a mismatch in ad creative

audience targeting

or the inherently passive nature of the platforms.

Strategic Recommendations

1. Prioritize High-Performing Channels

  • Maintain and further optimize campaigns on Facebook and Paid Search as they provide the highest return on investment (ROI) in terms of conversions and engagement.

2. Conduct Cost-Effectiveness Analysis

  • Perform a cost-per-conversion and conversion-per-interaction analysis to ensure continued efficiency across channels.

3. Leverage Online Video for Mid-Funnel Strategy

  • Develop and test video content focused on brand awareness and nurturing interest

especially for audiences not yet ready to convert.

4. Reevaluate Instagram and Online Display Strategies

  • Explore improvements through:

  • A/B testing new ad creatives and messaging

  • Revisiting audience segmentation

Optimizing