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Summary
Summary
Based on the analysis:
The online retailer generates £19.7M in 2 years duration, selling 11.1M gifting products.
Being a UK-based store before going online, we see that the brand popularity might have resulted as 86% of total revenue was from the UK.
With 72% repeat customers, each customer placing 4 orders on average with 200+ products by most customers, and maximum transactions occurring during business hours of works days, it is most likely that the main audience for the online retailer is wholesale purchasers.
Seasonality is seen over the two years of sales data. Events like Valentine's Day, Mother's Day, and Christmas are key to driving sales each year and customers purchase products related to the event 15-30 days before the event or festival.
We see a good retention of approximately 50% of customers year on year and new customers' share is higher than the churned users. So Churn rate is not a major issue. Churn rate could be further explored only in Netherlands and Sweden which have greater than 50% reduction in Customers and are key to revenue for the company.
Selling products together based on the learnings from the Market Basket analysis can help create association and drive online sales.
Question mark and Dog customers comprise 55% of total customers, these clusters have the potential to be driven to Cash cow or Star customers.
B2B Strategy
B2B Strategy
As most customers are Wholesale purchasers, increase reach by targeting B2B Wholesale Retailers via Marketing campaigns. Geo location based targeting of Gifting stores or office spaces or keyword based targeting could help.
Event Factor
Event Factor
We see sales directly impacted by events and festivals. We see momentum start 15-30 days before a festival or event, so stocking up on event related products and online promotion could help drive sales
Geo Expansion
Geo Expansion
We see revenue skewed towards UK and European countries, market expansion into markets that were less impacted by recession like Australia, Japan and Hong Kong could help drive new customers and increase sales
Product placement
Product placement
We observed certain products being placed together during transactions, these products can be placed closely in the online website to create association and drive sales. Customers would be likely to purchase more products.
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