The key business task in this case is to discover how casual riders and Cyclistic members use their rental bikes differently. Both the Director of Marketing as well as finance analysts have concluded that annual members are more profitable.
Goal : Draw insights from the data to convert casual members into subscribers.
Data Source : The company provides the last 12 months (April 2020 — March 2021) of historical trip data for us to analyze and identify trends (The data has been made available by Motivate International Inc. under this license.)
You can download the datasets here.
For statistical analysis I used R programming you can download the RMD file here.
Revealing Insights
After cleaning and manipulating the data now we are ready to visually Analyze the data to find Patterns and Trends within the data. To visualize I used the Tableau. View interactive Tableau dashboard here. Hover and click the data points to view different dimensions.
From the above graph we can see that bike usage spikes to the peak in August, which starts from May and remains till October. hence we can say that the best time to start the marketing campaign between May and June to attract large number of casual members.
It's clear that Subscribers are more active on weekdays and Casual members are more active on weekends (Saturday & Sunday). Now our target days will be Saturdays and Sundays.
We can see here that the average ride length of casual members is far more than that of subscribers. To attract the casual members designing subscription plans on ride length can be beneficial.
We have a limited resources for the marketing campaign or at least we don't want to waste our resources where we couldn't get more riders. But we don't know where to start. To find the answer refer to the below chart.
Now we can select the the top 5 or top 10 places or more according to our resources to launch the marketing campaign.
Conclusion
By asking three questions we can launch the marketing campaign.
When ?
From early May to June is the ideal time to launch the campaign. By breaking down the months into weeks we must focus on weekends.
Where ?
Select the Top 5 - 10 stations for the campaign. It more advisable to follow the 80/20 rule because our 80% of the riders staring at 20% of the total stations.
How ?
The answers for "When " and "Where" was easy but "How" isn't.
We know that most casual riders are active on Saturday and Sunday. Hence, launching limited time offers on subscription will draw more customers.
Earlier in the analysis we noticed that the average ride length is much more than that of subscribers. By giving incentives (like reward points for every KM they ride) based on ride length might attract the riders.
Example : Flipkart
When we shop on Flipkart they offer reward points in the form of super-coins, they can be exchanged for products or to buy the annual membership. a Win - Win! situation.
Conducting a product or services improvement surveys can be a supplement to our campaign.
Thank You.