Data Science, Analytics & Solutions
reduced delivery costs
This client was looking for an evaluation of their past delivery option strategies and campaigns. They wanted to be able to compare how profitability had been affected by these strategies by comparing the past year with the year before. They were looking for us to suggest appropriate thresholds for free and discounted delivery and develop a solution to make data-driven suggestions of how to use delivery thresholds intelligently.
What we did
We developed a series of analysis models and reports to provide the following: Year-on-year analysis of campaign times vs. non-campaign times, identifying the number of new orders and value generated from these. Identified customers spending more to reach free delivery thresholds and value generated and costs created from free delivery to those who would otherwise have paid. Modelling to define a range of suitable delivery options.
The client was provided with the detailed performance of past campaigns and identified which delivery strategies and pricing variations were most effective. This resulted in £325k of reduced delivery costs from 4.8% of total sales to 3.5%.