Advantage
Increasing profitability through data-driven promotions
Data
Transaction data (receipt data, master data, action features), external information (public holidays, etc.)
Methods
Time series analysis
Challenge
In order to consolidate its market position and create incentives for its customers to buy, a retailer invests a portion of its turnover each week in promotional sales and offers certain items from its product range at reduced prices. With regard to the planning of these promotions, there is as yet little reliable knowledge about the factors that determine their success.
Goal
The aim of the client is to use analytics to make the best possible decisions for the company. Statistical methods are used to uncover previously unknown patterns and correlations in the promotional business and to derive recommendations for action for the planning and management of promotions.
Solution
The analyses are based on data with a total volume of several terabytes. By linking various data sources - transactions at receipt level, master data, promotional features and external information such as public holidays - a comprehensive insight into the promotional business can be gained.
With the help of methods from the field of time series analysis, seasonal trends in the central KPIs are identified and adjusted for subsequent analyses.
Result
Which promotions are particularly successful? Which product groups are the most successful promotional products? How high is the effective additional turnover? What influence does a promotion have on the shopping basket?
With the support of eoda, the retailer has obtained reliable information about the actual impact of its promotions. The resulting analysis code is a crucial building block for the development of a group-wide tool for the optimal coordination of future promotions and the associated increase in profitability.
Get started now:
We look forward to exchanging ideas with you.
Your expert on Data-Science-Projects:
Lutz Mastmayer
projects@eoda.de
Tel. +49 561 87948-370
