Accelerated-Credit-Card-Revenue-Growth-through-Customer-Demographic-Analytics

Table of Contents

1. Business Overview
2. Project Overview
3. Data Overview
4. PowerBI Dashboard
5. Analysis and Key Insights
6. Business Implications
7. Recommendation
8. Conclusion

Business Overview

Zephyr Financial, a credit card company is experiencing challenges in sustaining its revenue growth, understanding customer behavior, and optimizing card usage across various customer segments. The company has noted high variability in transaction volumes, customer retention issues, and an inability to identify which customer categories contribute the most to overall revenue. These challenges are affecting the company’s ability to allocate resources effectively and personalize marketing strategies. Key metrics such as transaction amounts, customer demographics, card usage trends, and regional performance need to be analyzed to help Zephyr Financial identify opportunities for revenue growth, improve customer loyalty, and optimize product offerings.

Project Overview

The objective of this project is to develop a Credit Card Transaction and Customer Demographic Dashboard using Power BI to provide real-time insights into the company’s performance metrics and customer behavior. The dashboard solves the problem of :

1. Fragmented visibility into credit card operations,
2. Providing a consolidated view of performance metrics across customer demographics
3. Transaction types
4. Geographic regions.

This will assist Senior Leadership team to make data-driven decisions to optimize credit card offerings, increase revenue, reduce risk, and enhance customer experience through focused strategies.

Data Overview

This project leverages two primary datasets: Credit Card Transactional values and Customer data, containing over 10,100+ records each. The data spanned over one year of weekly updates and included key variables such as:

• Revenue: Total revenue generated from transactions
• Transaction Amount & Count: Total transaction value and number of transactions
• Interest Earned: Interest accrued from card payments
• Customer Demographics: Age group, income level, education, gender
• Card Type Usage: Usage of different card categories (Blue, Silver, Gold, Platinum)

The integration of these datasets facilitates a analytical framework for examining credit card performance and customer behavior. By correlating transactional metrics with demographic variables, the analysis can uncover actionable insights that drive strategic decision-making, optimize credit card offerings, enhance revenue streams, and improve customer experience through data-driven initiatives.

PowerBI Dashboard

Revenue Analytics

Customer Demographics

Analysis and Key Insights

1. Revenue Growth:

• Revenue increased by 28.8% WoW (Week over Week), signaling positive growth in credit card usage and potentially higher consumer spending.
• YTD (Year-to-Date) Revenue stands at $57M, indicating substantial financial activity over the year.

2. Customer Insights:

• Male customers contribute more to the revenue ($31M), while female customers contribute $26M.
• There’s an 11.35% increase in customer count, showing positive customer acquisition or retention.

3. Product Performance:

• Blue and Silver credit cards account for 93% of overall transactions, which means these tiers are performing significantly better than others (Gold and Platinum).
• It may indicate that customers prefer lower-tier cards, possibly due to better benefits or lower fees.

4. Transaction Volume:

• Total transaction count increased by 3.28% and the total transaction amount increased by 25.95% WoW, showing increased consumer engagement with credit cards.
• The average transaction amount is significantly increasing, hinting that customers are making higher-value purchases.

5. Geographic Insights:

• TX, NY, and CA contribute to 68% of the total revenue, making these key markets. The company may want to continue focusing on these regions for targeted marketing campaigns or customer engagement.

6. Customer Demographics:

• Customers aged 40-50 and 50-60 contribute the most to revenue, implying a high level of financial activity within these age groups.
• Education Level shows that graduates contribute the most revenue, followed by high school-educated customers. This provides insights for targeting specific education levels in marketing efforts.

7. Transaction Methods:

• Swipe transactions contribute the most revenue ($36M), followed by chip ($17M) and online ($4M). This indicates swipe payments are still highly prevalent, and more efforts may be needed to promote online transactions.

8. Credit Card Activation and Delinquency:

• Activation rate is at 57.5%, suggesting room for improvement in engaging more cardholders to activate their cards.
• The delinquent rate is 6.06%, which is a key metric to monitor for risk management.

Business Implications:

1. Targeted Marketing: The business can leverage the insights on top revenue-generating states (TX, NY, CA) and customer demographics (e.g., high-income males aged 40-50) to craft highly targeted marketing strategies, offering tailored benefits or loyalty programs.

2. Product Development: Given the dominance of Blue and Silver credit cards, the business can introduce more features or benefits to the Gold and Platinum cards to increase their adoption. Alternatively, they could focus on enhancing the experience for Blue and Silver cardholders.

3. Customer Engagement: The high contribution of swipe transactions shows room to promote other transaction methods, such as online or chip payments, which could improve security and customer convenience. Increasing the activation rate will drive more card usage and revenue, so campaigns around onboarding and activation should be prioritized.

4. Risk Mitigation: The delinquency rate of 6.06% could inform the business of potential credit risk, prompting strategies to mitigate defaults through better credit monitoring and offering debt management solutions.

5. Region-Specific Strategies: Since a significant portion of the revenue comes from TX, NY, and CA, the business can develop region-specific strategies to either enhance services in these areas or replicate success in lower-performing regions.

Recommendation

The analysis led to several actionable recommendations for Zephyr Financial:

• Focus on the Blue and Silver card categories, as they drive the majority of revenue and transactions.
• Increase marketing efforts in Texas, New York, and California to capitalize on high customer spending.
• Offer targeted incentives to male customers and high-income groups, as they contribute the most to revenue.
• Invest in increasing awareness among other payment modes other than swipe-based payment technology as well and promote it among customers, as it will generate greater revenue.

These recommendations guided Zephyr Financial toward optimizing its customer engagement strategies and driving long-term growth.

Conclusion

The comprehensive analysis of Zephyr Financial’s credit card operations through the development of a robust dashboard has provided invaluable insights into revenue growth, customer behavior, and product performance. By synthesizing data across multiple dimensions—demographics, transaction types, and geographic regions—this project has equipped the Senior Leadership team with the tools necessary for informed decision-making. The actionable recommendations derived from the analysis not only target immediate revenue enhancement opportunities but also lay the groundwork for long-term strategic initiatives. As Zephyr Financial continues to adapt to evolving market dynamics, this data-driven approach will facilitate optimized customer engagement, tailored marketing efforts, and enhanced product offerings, ultimately driving sustainable growth and reinforcing the company’s position in the competitive credit card landscape.