Analyzing correlations between sales marketing and demographic data

Analyzing Correlations between Sales, Marketing and

Demographic Data

ShiSh

Retail Industry Solutions Director

Microsoft Corp

Twitter: @5h15h

LinkedIn: http://linkedin.com/in/shishs

Contact

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Presentation

Source: http://xkcd.com/552/

The coffee hour that's best for blood sugar

Eating pizza 'cuts cancer risk'

The Oprah Effect

Image owner: jayfarm1980

Shared using Creative Commons from LINK

Beer & Football

Beer & Diapers

Image owner: ocbeejay

Shared using Creative Commons from LINK

•Watch out for Bias

•Check for Patterns, not Single Matches

•Check Multiple Sources of Information

Source: http://blog.8thandwalton.com/2013/02/correlation-is-not-causation-even-in-retail-link/

Correlation is not Causation

How Target Figured Out A Teen Girl Was

Pregnant Before Her Father Did

Shopping Patterns Reflect Life Changes

Data from Sales Corelated to Birth Registry to determine patterns

Attempt to get better customer insights & predict what customers want before they tell you

Example Scenario: Listening to the Voice of the Customer

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Sales Forecast

Traditional Cameras Digital Cameras

Extrapolated Forecast Actual Data

How Weather Influences Sales

9Source: Fortune Magazine

Data Brokers

Data Markets

2. Create a Yelp Account and Get an

API Key

1. Download the Power BI Excel Addins for Excel 2013 from http://bit.ly/135AXcs

Some of the APIs you can use for getting Correlation Data

Demographic data from Azure Data Market

Source for Seattle City Data

http://api.yelp.com/business_review_search?term=Sta

rbucks&location=Seattle&ywsid=YourAPIKey

Use From Web

Seattle Area Starbucks Foursquare CheckIns Visualized using Heatmaps via Excel, Power

Query and Power Map

This Starbucks in Kent, WA has the most Foursquare activity

Seattle area GrouponDeals visualized using Excel, Power Query &

Power Map

Analysis of QFC &

Safeway in Seattle

Correlate Demographic data for each store

location

Hipster Alert Data Acquired using Power

Query from Yelp & visualized with Power Map

in Excel 2013

Public Parking Data Obtained from

http://data.seattle.gov Restaurant Data from Yelp

Correlation Coefficient

Quick Reference for calculation Pearson's Correlation Coefficient : http://bit.ly/1depeRL

• Impact of Weather on Sales

• How does the average age / income / education impact sales of specific

categories

• How does changes in gas price impact specific retail categories and

segments

• How does changes in unemployment rate affect retail categories

Data Analysis Toolpak enables calculation of Correlation

Coefficient in Excel

Key Influencers• Uses Naïve Bayes Data Mining Algorithm

Data Mining Addins for Excel

Resources

• Power BI Downloads: http://office.microsoft.com/en-us/excel/power-bi-FX104080667.aspx

• Yelp API: http://www.yelp.com/developers

• Foursquare API: https://developer.foursquare.com/

• Apigee : http://www.apigee.com

• Windows Azure Marketplace: https://datamarket.azure.com/

• The ShiSh List: http://blogs.msdn.com/shishirs

• Twitter: http://twitter.com/msretail