Modeling Customer Behavior
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I. Abstract
Predicting customer behavior is a crucial part of the e-commerce industry for platforms such as Fingerhut to enhance user experience and drive business. Our team leveraged the extensive dataset provided to us from Fingerhut to focus on predicting whether a customer will complete a “journey” on the company’s web page; defining a successful journey as one where the customer reaches the ‘order shipped’ event stage. After our team performed meticulous feature engineering and cleaning on the dataset, we evaluated and trained the data on several different models, such as Logistic Regression, Gradient Boosting, Neural Networks, XGBoost, and Decision Trees, finding the XGBoost model to be the most effective, achieving the highest F1 score of 73%. Although our team faced many limitations due to the extensive size of the dataset as well as our limited computing power, we believe our results to be of great value to the Fingerhut team and to have the potential to be leveraged to learn more about their customer’s behavior and evidently drive business in the coming years.