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Exploring Sales Distribution by Category in Superstore Dataset

What is the distribution of sales by category?

Distribution of Sales by Category

  • Loaded the dataset and displayed the initial rows to understand its structure.
  • Summarized sales data by category using a pie chart to visualize the distribution.

Can you analyze profit margins by region?

Profit Margins by Region:
  • Central: -10.41%
  • East: 16.72%
  • South: 16.35%
  • West: 21.95%

What is the cohort retention?

To analyze cohort retention, we would typically group customers based on their first purchase date and track their subsequent purchases over time. This involves several steps:
  1. Identifying the Cohort: Determine the first purchase date for each customer to assign them to a cohort.
  2. Tracking Subsequent Purchases: For each subsequent period, check if the customers from each cohort made any purchases.
  3. Calculating Retention Rates: Calculate the percentage of customers from the initial cohort who made purchases in the following periods.
Let's proceed by identifying the cohort for each customer based on their first purchase.

Cohort Analysis Preparation

  • Converted the 'Order Date' to datetime format for accurate processing.
  • Created a new dataframe to identify the first purchase date for each customer and assigned them to a monthly cohort.
  • Merged this cohort information back into the original dataset to facilitate further analysis.
Next, we will calculate the retention matrix to see how many customers from each cohort made purchases in subsequent months.

Cohort Retention Analysis

  • Created an 'Order Period' column to reflect the month of each order.
  • Grouped the data by 'Cohort Month' and 'Order Period', then counted unique customers in each period.
  • Formulated a retention matrix as a pivot table, showing how many customers from each cohort made purchases in subsequent months.
  • Calculated retention rates by dividing customer counts per period by initial cohort sizes and converted these rates into percentages for better readability.

Visualize this for me

Update to use monthly retention cohorts

Compare retention rates across different regions

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Ask for further analysis on customer behavior

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Analyze purchase frequency by customer segments

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