Petabytes for insights
A food retailer data mining project in search of new revenue and old bottlenecks got results with its first month
Project review:
Brief
Our client is the pioneer among online-only food retailers and is one of the largest in Eastern Europe. The company started to operate in early 2000-s and since then accumulated Petabytes of data about sales, logistics and customer behavior. Data mining algorithms helped the retailer management to get valuable insights into operations. Within just one month from the start, based of these insights, our client initiated eight projects to eliminate bottlenecks and increase revenue. The project of data mining developed into a process and is still used in the company on the continuous basis.
Services
Consulting, Data mining
Industry
Food retail, FMCG
Year
2013
Data mining helps to look at all company operations from above and to give insights into new sales and cost cutting
Challenge:
Company management is often occupied by routine operations and have little to no time to think about long-term strategy or new projects. Operational changes on the revenue side mostly occur due to competitor moves or economical circumstances. On the expenses side - as a reaction to falling profits or loss. To get regular data driven unbiased information for managerial decisions data mining is one of few available instruments The insight which one gets with such a tool needs a common sense proof-check and when passed it needs no further explanation to other decision makers.
Data mining is efficient at its maximum when up-to-date technology is used by qualified data scientist
Solution:
We launched a data mining project which included systematizing of data, organizing its storage and user access - and after that data analysis itself. The result of the preparation phase was the transition from a so-called data swamp to structured data. When the data was systematized the presets were made: clustered buyers, clustered shopping baskets, transition to loyal customer model, product categories for marketing campaigns and a typical shopping baskets model. Also, lists of connecting, basket-forming and magnet goods were defined. These presets were available to Marketeers and Category Managers via specially created user interfaces.
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