All Life Bank Customer Segmentation

BUSINESS RECOMMENDATION

Illustrate the insights based on EDA

Observations (Mean):

• Avg_Credit_Limit: 34574.24
• Total_Credit_Cards:4.70
• Total_visits_bank:2.40
• Total_visits_online:2.60
• Total_calls_made:3.58

Univariate Analysis (continuous numerical)

• Feature: Avg_Credit_Limit, Mean: 34574.242424242424, Median:

18000.0, Mode: 100000

Univariate analysis (discrete numerical)

• Feature: Total_Credit_Cards, Mean: 4.706060606060606, Median:

5.0, Mode: 2
• Feature: Total_visits_bank, Mean: 2.403030303030303, Median:
2.0, Mode: 1
• Feature: Total_visits_online, Mean: 2.606060606060606, Median:
2.0, Mode: 1
• Feature: Total_calls_made, Mean: 3.5833333333333335, Median:
3.0, Mode: 0

Bivariate analysis
• 'Avg_Credit_Limit' vs. 'Total_calls_made' Negative correlated
• 'Avg_Credit_Limit': vs. 'Total_visits_online' Positive correlated
• 'Avg_Credit_Limit': vs. 'Total_Credit_Cards' Positive correlated
• 'Total_calls_made' vs. 'Total_Credit_Cards' Negative correlated
 • 'Total_visits_bank' vs. 'Total_Credit_Cards' Positive correlated
• 'Total_visits_bank' vs. 'Total_visits_online' Negative correlated
• 'Total_visits_bank' vs. 'Total_calls made' Negative correlated
• There is no correlations above +/- 0.75 threshold

Insights K-means

• Cluster 0 :
o Avg_Credit_Limit: The mid end type of client.
o Total_Credit_Cards: The mid end type of client.
o Total_visits_bank: Visit the most the bank.
o Total_visits_online: Doesn't access much the online bank.
o Total_calls_made: Don't call as much as expected.
• Cluster 1 :
o Avg_Credit_Limit: The lowest end type of client.
o Total_Credit_Cards: The lowest end type of client.
o Total_visits_bank: Doesn't visit much the bank.
o Total_visits_online: Average end in terms of online banking
usage.
o Total_calls_made: The highest end type of client.
• Cluster 2 :
o Avg_Credit_Limit: The highest end type of client.
o Total_Credit_Cards: The highest end type of client.
o Total_visits_bank: The lowest end type of client.
o Total_visits_online: The highest end type of client.
o Total_calls_made: The lowest end type of client.

Insights hierarchical clustering

• Cluster 0 :
o Avg_Credit_Limit: The lowest end type of client.
o Total_Credit_Cards: The lowest end type of client.
o Total_visits_bank: The lowest end type of client.
o Total_visits_online: The mid end type of client.
 o Total_calls_made: The mid end type of client.
• Cluster 1 :
o Avg_Credit_Limit: The highest end type of client.
o Total_Credit_Cards: The mid end type of client.
o Total_visits_bank: The lowest end type of client.
o Total_visits_online: The highest end type of client.
o Total_calls_made: The highest end type of client.
• Cluster 2 :
o Avg_Credit_Limit: The mid end type of client.
o Total_Credit_Cards: The highest end type of client.
o Total_visits_bank: The mid end type of client.
o Total_visits_online: The lowest end type of client.
o Total_calls_made: The lowest end type of client.

Conclusions K-means

• Cluster 0 : Seems to be type of clients with the lowest credit limit,

more willing to visit the bank.
• Cluster 1 : Mid range type of client a mix between cluster 2 and
cluster 0.
• Cluster 2 : Seems to be the type of client with the highest credit
limit, more willing to use online banking system.

Conclusions Hierarchical clusters

• Cluster 0 : Seems to be type of clients with the lowest credit limit.

• Cluster 1 : Seems to be type of clients with the highest credit limit.
A client that demands online and mobile contact.
• Cluster 2 : Seems to be the type of client with the mid credit limit
range, a type of client that do not visit the bank neither use the
online banking.

Actionable Recommendations
3 different clusters with two different methods kmeans and hierarchical
clustering.
 1. How are these segments different from each other?

The clusters are divided based on their credit limit and their needs to
contact the bank. The client have the option to visit the bank, to use the
call center or to use the online banking.
Insights K-means

• Cluster 0 :
o Avg_Credit_Limit: The mid end type of client.
o Total_Credit_Cards: The mid end type of client.
o Total_visits_bank: Visit the most the bank.
o Total_visits_online: Doesn't access much the online bank.
o Total_calls_made: Don't call as much as expected.
• Cluster 1 :
o Avg_Credit_Limit: The lowest end type of client.
o Total_Credit_Cards: The lowest end type of client.
o Total_visits_bank: Doesn't visit much the bank.
o Total_visits_online: Average end in terms of online banking
usage.
o Total_calls_made: The highest end type of client.
• Cluster 2 :
o Avg_Credit_Limit: The highest end type of client.
o Total_Credit_Cards: The highest end type of client.
o Total_visits_bank: The lowest end type of client.
o Total_visits_online: The highest end type of client.
o Total_calls_made: The lowest end type of client.

Insights hierarchical clustering

• Cluster 0 :
o Avg_Credit_Limit: The lowest end type of client.
o Total_Credit_Cards: The lowest end type of client.
o Total_visits_bank: The lowest end type of client.
o Total_visits_online: The mid end type of client.
o Total_calls_made: The mid end type of client.
 • Cluster 1 :
o Avg_Credit_Limit: The highest end type of client.
o Total_Credit_Cards: The mid end type of client.
o Total_visits_bank: The lowest end type of client.
o Total_visits_online: The highest end type of client.
o Total_calls_made: The highest end type of client.
• Cluster 2 :
o Avg_Credit_Limit: The mid end type of client.
o Total_Credit_Cards: The highest end type of client.
o Total_visits_bank: The mid end type of client.
o Total_visits_online: The lowest end type of client.
o Total_calls_made: The lowest end type of client.

2. What are your recommendations to the bank on how to better

market to and service these customers?

The bank received a lot of complains about their service to clients.

However, not every single type of client require "attention" from the
bank. The clusters helped us identify who were clients with the most
credit limit, that hold the most credit cards and needed more attention
from the bank which would be a group important to explore more their
"share of wallet".
Conclusions K-means
- `Cluster 0` : Seems to be type of clients with the lowest credit limit, mo
re willing to visit the bank.
- `Cluster 1` : Mid range type of client a mix between cluster 2 and clust
er 0.
- `Cluster 2` : Seems to be the type of client with the highest credit limit,
more willing to use online banking system.
Conclusions Hierarchical clusters
- `Cluster 0` : Seems to be type of clients with the lowest credit limit.
- `Cluster 1` : Seems to be type of clients with the highest credit limit. A
client that demands online and mobile contact.
- `Cluster 2` : Seems to be the type of client with the mid credit limit ran
ge, a type of client that do not visit the bank neither use the online banki
ng.
Recommendations
Accessing customers with an upper credit limit seems to be the best
strategy based on the analysis of the clusters.
• Kmeans -> Cluster 2 : Explore online marketing campaigns to this
type of client. High financial potential in comparison with others
clusters and desirous to access the bank online.
• Hierarchical -> Cluster 1 : Explore online marketing campaigns to
this type of client, and also develop a better approach in the call
center. This type of client is willing to access the bank online
however needs a better call center service.
Insights
• Cluster 0
o Second lowest Avg_Credit_Limit with a higher variance.
o Second highest number in Total_Credit_Cards.
o Total_visits_bank biggest one.
o Total_visits_online smallest one.
o Total_calls_made avg of 2.
o Clients visit in person.

• Cluster 1
o The lowest Avg_Credit_Limit with a smaller variance.
o The lowest number in Total_Credit_Cards.
o Total_visits_bank second smallest.
o Total_visits_online second biggest.
o Total_calls_made The highest number of clients whom make
phone calls.
o Clients would rather call.

• Cluster 2
o The highest Avg_Credit_Limit with a smallest variance.
 o The highest number in Total_Credit_Cards.
o Total_visits_bank the smallest.
o Total_visits_online the biggest.
o Total_calls_made The smallest.
o Clients would visit online.
• Cluster 3
o The second highest Avg_Credit_Limit with a bigger
variance.
o The second biggest number in Total_Credit_Cards.
o Total_visits_bank second smallest.
o Total_visits_online the smallest.
o Total_calls_made The second smallest.
o Clients visit in person.

Business Recommendations
• Cluster 0
• This type of customer has a good Avg_Credit_Limit and likes to
visit the bank in person. It is important to identify visiting patterns
and improve your experience.
• Cluster 1
• This type of customer has a bad Avg_Credit_Limit and likes to call
the bank. It is important to identify whether they are the type of
customer the bank wants to invest in. Mainly because developing a
better call center experience can be expensive and customers in
this cluster enjoy the phone call experience.
• Cluster 2
• This type of customer has a good Avg_Credit_Limit and likes to
visit the online bank. It is important to identify patterns of online
visits and improve your experience by tracking your internet flow
showing new products and services.
• Cluster 3
• This type of customer has a good Avg_Credit_Limit and likes to
visit the bank in person. It is important to identify visiting patterns
and improve their experience.