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D A T A S C I E N C E . C O M
KEY REVENUE DRIVING ANALYSES FOR
ONLINE RETAILERS
PRODUCT RECOMMENDATIONS
D A T A S C I E N C E . C O M
PRODUCT RECOMMENDATIONS
WHY THESE ARE VALUABLE:By understanding which products are purchased together we can recommend products to individuals that they are most likely to purchase
WHICH KPI THIS IS GOING TO EFFECT:Increase average order value (AOV) by better matching customers to the products they want to purchase
EXAMPLE OF A MODEL THAT IS APPLIED:Collaborative filtering, association rule mining
TYPICAL DATASET TO WORK ON THIS:User sales data
We’re here to helpContact [email protected]
PERSONALIZATION
D A T A S C I E N C E . C O M
PERSONALIZATION
WHY THIS IS VALUABLE:Tailoring search results to individual browsing habits can provide visitors a more streamlined and enjoyable shopping / browsing experience
WHICH KPI THIS IS GOING TO EFFECT:Increase conversate rate of purchasing users by creating experiences tailored to individual preferences
EXAMPLE OF A MODEL THAT IS APPLIED:Bayesian multivariate optimization
TYPICAL DATASET TO WORK ON THIS:Browsing history, sale, favorite, and cart data
We’re here to helpContact [email protected]
SEARCH / RANK OPTIMIZATION
D A T A S C I E N C E . C O M
SEARCH/RANK OPTIMIZATION
WHY THIS IS VALUABLE:Optimizing the set and order of items displayed for search results and department pages can help users find what they want faster and increase conversion
WHICH KPI THIS IS GOING TO EFFECT:Increase conversion rate and site traffic
EXAMPLE OF A MODEL THAT IS APPLIED:Conversion optimization
TYPICAL DATASET TO WORK ON THIS:Impression and click analytics
We’re here to helpContact [email protected]
INVENTORY AND SALES MODELS
D A T A S C I E N C E . C O M
INVENTORY AND SALES MODELS
WHY THESE ARE VALUABLE:Knowing the likely amount of sales to occur in the future can inform ordering and stock decisions
WHICH KPI THIS IS GOING TO EFFECT:Increase sell-through-rate by better aligning inventory with sales
EXAMPLE OF A MODEL THAT IS APPLIED:Yield management
TYPICAL DATASET TO WORK ON THIS:Sales transactions
We’re here to helpContact [email protected]
SEASONAL SALES TRENDS ANALYSIS
D A T A S C I E N C E . C O M
SEASONAL SALES TRENDS ANALYSIS
WHY THIS IS VALUABLE:Invariably, most stores carry some products that ebb and flow in popularity. These seasonal changes can be automatically detected
WHICH KPI THIS IS GOING TO EFFECT:Achieve better planning and forecasting by being able to understand the natural cycles of your business
EXAMPLE OF A MODEL THAT IS APPLIED:ARIMA and other time series approaches
TYPICAL DATASET TO WORK ON THIS:Sales transactions
We’re here to helpContact [email protected]
PRODUCT TREND ANALYSIS
D A T A S C I E N C E . C O M
PRODUCT TREND ANALYSIS
WHY THIS IS VALUABLE:All inventory goes through spikes and drops in popularity. How similar items have performed in the past, and how an item has performed recently, often provides strong insight into how it will perform in the near future
WHICH KPI THIS IS GOING TO EFFECT:Improve your sell-through rate by being better able to understand, stock, and promote the items that will sell the best
EXAMPLE OF A MODEL THAT IS APPLIED:ARIMA and other time series approaches
TYPICAL DATASET TO WORK ON THIS:Sales and impression data
We’re here to helpContact [email protected]
CUSTOMER COHORT DESIGN AND
SEGMENTATION
D A T A S C I E N C E . C O M
CUSTOMER COHORT DESIGN AND SEGMENTATION
WHY THIS IS VALUABLE:An evidence based construction of personas describing customers can inform product development about how people use a store and what features would and would not benefit them
WHICH KPI THIS IS GOING TO EFFECT:Increase average order value (AOV) by more accurately positioning products to the right segments
EXAMPLE OF A MODEL THAT IS APPLIED:k-nearest neighbors, cosine similarity, jaccard index
TYPICAL DATASET TO WORK ON THIS:Browsing history, sale, favorite, and cart data
We’re here to helpContact [email protected]
EMAIL CAMPAIGN SEND FREQUENCY
OPTIMIZATION
D A T A S C I E N C E . C O M
EMAIL CAMPAIGN SEND FREQUENCY OPTIMIZATION
WHY THIS IS VALUABLE:Gain a better understanding of when to send email, whom to send them to, and how to send them
WHICH KPI THIS IS GOING TO EFFECT:Increase customer retention rate by maximizing your ability to keep customers engaged
EXAMPLE OF A MODEL THAT IS APPLIED:Multivariate A/B testing
TYPICAL DATASET TO WORK ON THIS:Email open and click-through logs
We’re here to helpContact [email protected]
CART ABANDONMENT
ANALYSIS
D A T A S C I E N C E . C O M
CART ABANDONMENT ANALYSIS
WHY THIS IS VALUABLE:When consumers add items to their cart but fail to checkout, the inventory they leave behind can tell us a lot about them
WHICH KPI THIS IS GOING TO EFFECT:Decrease cart abandonment rate and increase net sales
EXAMPLE OF A MODEL THAT IS APPLIED:Price elasticity, ad re-targeting, email promotion optimization
TYPICAL DATASET TO WORK ON THIS:User events on site and purchases
We’re here to helpContact [email protected]
FRAUDULENT TRANSACTION
DETECTION
D A T A S C I E N C E . C O M
FRAUDULENT TRANSACTION DETECTION
WHY THIS IS VALUABLE:Identify indicators of fraudulent transactions so that you can put preventative measures in place to stop them before they happen in the future
WHICH KPI THIS IS GOING TO EFFECT:Decrease chargebacks and recover more revenue
EXAMPLE OF A MODEL THAT IS APPLIED:Bayesian networks, logistic regression
TYPICAL DATASET TO WORK ON THIS:Sales transactions, web logs
We’re here to helpContact [email protected]
CHURN ANALYSIS
D A T A S C I E N C E . C O M
CHURN ANALYSIS
WHY THIS IS VALUABLE:Understand what events indicate a customer will churn and which types of customers are most likely to leave your service
WHICH KPI THIS IS GOING TO EFFECT:Incrase customer retention by being able to idenitfy users that are most likely to cancel their subscriptions
EXAMPLE OF A MODEL THAT IS APPLIED:Machine learning techniques such as random forest
TYPICAL DATASET TO WORK ON THIS:Customer log and event data
We’re here to helpContact [email protected]
SUBSCRIPTION LIFETIME
FORECASTING
D A T A S C I E N C E . C O M
SUBSCRIPTION LIFETIME FORECASTING
WHY THIS IS VALUABLE:Forecasting the subscription length of different segments provides a more accurate understanding of future revenues and your most valuable segments
WHICH KPI THIS IS GOING TO EFFECT:Increase overall Customer Lifetime Value by understanding what segments of your user base are the most lucrative
EXAMPLE OF A MODEL THAT IS APPLIED:MCMC simulated survivial analysis on censored data
TYPICAL DATASET TO WORK ON THIS:Customer log and event data
We’re here to helpContact [email protected]
LONGITUDINAL IMPACT ANALYSIS
D A T A S C I E N C E . C O M
We’re here to helpContact [email protected]
LONGITUDINAL IMPACT ANALYSIS
WHY THIS IS VALUABLE:Small changes can have long term consequences. A few too many sales can shift customer opinion to think of you as the “wait for a discount” provider. With properly constructed experimental design, smart sellers can measure and watch out for such pitfalls
WHICH KPI THIS IS GOING TO EFFECT:Increase customer retention by ensuring a sustainable and quality product over time
EXAMPLE OF A MODEL THAT IS APPLIED:Multivariate hypothesis testing and time series analysis
TYPICAL DATASET TO WORK ON THIS:Marketing event logs and sales transactions
REFERRAL / LOYALTY PROGRAM
EFFECTIVENESS
D A T A S C I E N C E . C O M
REFERRAL / LOYALTY PROGRAM EFFECTIVENESS
WHY THIS IS VALUABLE:The best advertising is word of mouth advertising. Programs to encourage these activities often have impressive ROI. Proper tracking and optimization can ensure the greatest yield
WHICH KPI THIS IS GOING TO EFFECT:Increase customer acquisition by optimizing referall rewards and channels
EXAMPLE OF A MODEL THAT IS APPLIED:A/B testing, simluation, and general machine learning approaches
TYPICAL DATASET TO WORK ON THIS:Program tracking
We’re here to helpContact [email protected]
SURVEY RESPONSE ANALYSIS
D A T A S C I E N C E . C O M
SURVEY RESPONSE ANALYSIS
WHY THIS IS VALUABLE:Most online shoppers are very willing to share their thoughts with stores. Extracting the most value from this feedback can enable an experience better tailored to your best customers
WHICH KPI THIS IS GOING TO EFFECT:Increase NPS by better understanding what satisfies your customers
EXAMPLE OF A MODEL THAT IS APPLIED:Crosstab significance testing, sample balancing, survey design, open ended analysis
TYPICAL DATASET TO WORK ON THIS:Survey response data
We’re here to helpContact [email protected]
DELIVERY DATE ANALYSIS
D A T A S C I E N C E . C O M
DELIVERY DATE ANALYSIS
WHY THIS IS VALUABLE:Returns, delays, and lost packages all spell disaster for stores. When delivery plays a roll in this, an optimized shipping schedule can often reduce these costs
WHICH KPI THIS IS GOING TO EFFECT:Increase customer satisfaction scores by ensuring packages are delivered quickly, on-time, and with minimal hassle for users
EXAMPLE OF A MODEL THAT IS APPLIED:Historical analysis and simulation
TYPICAL DATASET TO WORK ON THIS:Shipment tracking data
We’re here to helpContact [email protected]
D A T A S C I E N C E . C O M
