Fruit Box is a company dedicated to the sale of seasonal fruit boxes on request. These are closed boxes, so users can not change the products to their liking. They usually have four models, which combine different types of fruit and three sizes; S, M and L. The company is located in the town of Huelva (Andalusia, Spain), and although many of the fruits they sell are grown there, the company acquires some products from companies in other autonomous communities, such as oranges and bananas. Traditionally, orders were made by phone or by mail, but for some time the company opened its own website that has an online store to place orders, as well as a mobile application. In addition to that, a profile has been opened on Facebook and Instagram, both of which have been very well received. The company has a long history, as well as a large number of customers who are loyal to the company and who buy their boxes of fruit throughout the year. Since a few months ago the company is losing regular customers due to the birth of other companies dedicated to the same field, but with notable differences, such as the possibility of personalising their fruit boxes.Some characteristics that we must consider concerning the main competitor of Fruit Box are:

  • Location: Barcelona.
  • Type of boxes: customizable boxes of fruit and vegetables in season, as well as pre-established boxes with exotic fruit, such as mango, papaya or avocado, which they acquire from a Malagueño producer.
  • There are no configured cash measures, but from a minimum, the customer can buy all the fruit and vegetables he wants.
  • In Barcelona, they have an immediate delivery service, while in the rest of Spain they deliver the products in less than 24 hours.
  • For those customers who know what they want, they offer the possibility to register and subscribe to a type of box temporarily.

The type of client is very varied, from individuals to companies, who buy the fruit for their employees. Another problem that they detect is that the online store is not very manageable. Due to this, many customers call to place an order or write an email complaining about the deficiencies. Some problems that the online store presents are: you cannot access the customer area if you have not previously added an item to the cart or the payment method is requested before the customer shows the price of your order. Besides, and for some time, they have changed their transportation service, which also leads them to receive complaints because some of the orders arrive late and in poor condition. The company has decided to carry out a process of customer analytics so that it allows to know the reasons that have led to losing customers, as well as to know their customers better and to be able to offer them the product they want and the way they want

  1. Make a SWOT analysis of the current situation, so that the weaknesses of the company and the external threats to which they must face are apparent.
  2. Now that we know the situation of the environment, as well as our own in detail, it is essential that we fix what we want to achieve with the development of customer analytics. To do this, and following the SMART technique, set those objectives you want to accomplish with the analysis of your customers’ data.
  3. Explain whether you will use structured data or unstructured data for your analysis. You must justify the reason for your choice, in addition to determining what data you will accurately analyse to know what your customers want. Justify your answer.
  4. When we have the data, we will proceed to its exploration, to verify that the data we are going to analyse is correct and will provide us with the necessary information. Based on this data, what kind of graph or graphics would you use to visualise all this information? Do you consider it necessary to relate some of these variables? And why?
  5. In addition to the segmentation variables proposed concerning Fruit Box, do you think some other segmentation on some other variable would be necessary? Justify your answer.

Answer

Answer:

1.SWOT Analysis: Strengths: Long history and established customer base. Local production of fruits in Huelva, providing fresh and seasonal options. Presence on social media platforms, Facebook and Instagram, with a good reception. Offer of different fruit box models and sizes. Weaknesses: Inability to customize fruit boxes according to customer preferences. Online store and mobile application have usability issues, leading to customer complaints. Problems with the transportation service resulting in late and poor condition deliveries. Losing regular customers to competitors offering personalized fruit boxes. Opportunities: Growing demand for online fruit box orders. Potential to expand customer base by offering customization options. Leveraging local produce and emphasizing the quality and freshness of the fruit. Enhancing the online store and mobile application for better user experience. Threats: Competition from new companies that offer customizable fruit boxes. Competitors providing immediate delivery services in certain locations. Negative customer reviews and dissatisfaction due to late and poor condition deliveries. Potential loss of market share and revenue if customer retention continues to decline.

2.Objectives using the SMART technique: Specific: Increase customer satisfaction and retention rates, improve online store usability, and enhance delivery service. Measurable: Increase customer retention by 15% within six months, reduce customer complaints by 20%, and improve delivery timeliness by achieving 95% on-time deliveries. Achievable: By implementing customer analytics, addressing usability issues, and optimizing the delivery process. Relevant: Improving customer satisfaction and retention will help regain lost customers and maintain a competitive position. Time-bound: Achieve the defined objectives within a six-month timeframe. 3.Choice of data analysis and variables: Both structured and unstructured data should be used for the analysis. Structured data includes customer demographics, order history, purchase frequency, and customer feedback ratings. Unstructured data includes customer complaints, email content, and social media comments. Key data to analyze: Customer demographics: Age, location, occupation, etc. Purchase behavior: Frequency, order size, preferred fruit box model, and size. Customer feedback: Ratings, reviews, and complaints. Usability data: Website/app navigation patterns, cart abandonment rates, and customer support interactions. Justification: Structured data provides quantitative insights into customer behavior and preferences, allowing for segmentation and trend analysis. Unstructured data provides qualitative insights, such as sentiments and specific issues mentioned by customers, helping identify pain points and areas for improvement. 4.Visualization of data: To visualize the customer data, the following graphs and graphics can be used: Bar charts: Comparing customer satisfaction ratings before and after implementing improvements. Line graphs: Tracking customer retention rates and order frequency over time. Pie charts: Showing the distribution of customer preferences for different fruit box models and sizes. Heatmaps: Displaying geographic distribution of customers and delivery performance. Scatter plots: Exploring the relationship between customer age, order size, and satisfaction ratings. It may be necessary to relate certain variables, such as customer satisfaction ratings with delivery timeliness or order frequency with customer demographics. This can help identify patterns and understand the impact of specific factors on customer behavior and satisfaction. 5.Additional segmentation variables: Apart from the proposed segmentation variables, considering the diverse customer base and types of clients, it would be beneficial to segment based on: Customer type: Individuals vs. companies (e.g., size of the company, number of employees). Geographic location: Analyzing preferences and demand in different regions. Customer preferences: Allowing customers to indicate their preferred fruit types or excluding certain fruits due to allergies or dietary restrictions.

Explanation:

By further segmenting the customer base, the company can tailor its offerings and marketing strategies to specific customer segments, providing a more personalized experience and potentially increasing customer satisfaction and retention.

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