Targeting decreasing returning buyers
One important aspect of businesses is that recurring customers always buy more than new ones, so it’s important to keep an eye on them and act if we see that they are changing their behavior. One of the things that we can do is identify the clients with decreasing buying patterns and offer them new products that they are not yet buying. In this case, we will look at consumer goods distribution center data to identify these customers with decreasing purchases:
- First, we will import the necessary libraries, which are the following: pandas for data manipulation, NumPy for masking and NaNs handling, and scikit-surprise for collaborative filtering product recommendation.
- We will explore the data to determine the right strategy to normalize the data into the right format.
- Once the data is structured, we will set up a linear regression to determine the clients with a negative slope to identify the ones with decreasing consumption...