Data Science, Analytics & Solutions
As a result of some earlier analysis on online conversion optimisation this online specialty retailer was looking to become more sophisticated and targeted with its promotional strategies and tactics. The objectives for the work were to figure out the optimal promotion mechanic and offer for a range of key online journeys looking at ways to protect margin and reduce delivery costs where possible by grow basket volume during the purchase and checkout cycles.
What we did
Using the groundwork from the initial optimisation project, the data was immediately ready for use. The approach taken was to look for natural associations between products to assist the Commercial and Marketing teams in the selection and design of the best promotional creatives, cross-sell combinations and product placement onsite. A series of new dynamic product measures were developed such as product purchase frequency, items per order, and customer purchase frequency. Along side these we calculated the 'lift' for each product to quantify its association scores and propensity to other products.
These measures and association scores were delivered through our reporting solution to provide a continuously automated and updated set of views for each product, combination and live promotion. This provided the teams with all the data points required to evaluate existing promotions, select and test new combinations quickly and retire under-performing promotions. Within the first three months the new promotions were out performing the old with a 15% volume increase on average.