Summarizing Customer Behaviors
The customer signature has been presented as a place to put lots of data elements and basic summaries. It is also a place to put more complex measures of customer behaviors that rise to being customer-centric business metrics.
This section has three examples. The first is calculating the slope, the beta value, for series of transactions. The second is identifying weekend shoppers, and the third is applying metrics to identify customers whose usage is decreasing.
Calculating Slope for Time Series
Pivoting numeric values creates a time series, such as the dollar amount of purchases in a series of months. Using the ideas from Chapter 12, we can calculate the slope for these numbers.
Most households in the purchases data have one order, which does not provide a good example for finding a trend. Instead, let’s look at the zip-code level: Which zip codes have seen an increase in customers in the years before the cutoff date? Notice that this question is...