APPROACH

Predictive analytics was performed to prescribe recommendations.

  • Key parameters were chosen from an exhaustive set of attributes such as OG data for existing stores, Point of Sales data, competitor information, market factors, and behavioural segments
  • Machine Learning techniques like GLM, Random Forest, and SVM were used to predict OG orders for new stores
  • Bootstrapping technique was implemented for model robustness
  • The algorithms were tested and validated recursively on 100 random samples
  • The model predictions improved over time

KEY BENEFITS

  • The solution helped identify factors influencing OG orders such as the client’s grocery share in CMA, percentage of shoppers who fall under primary grocery households, grocery sales over the past 4 months, OG awareness in CBSA, etc.
  • Based on model predictions, the client was able to classify stores as super-high, high, and medium, allowing optimal budget allocation for rolling out OG in select stores

RESULTS

  • Client has successfully rolled out OG in more than 600 stores
  • Client was able to derive more profitability from OG customers, with purchases 27% more than similar in-store-only customers
  • About 20% of store customers now have tried OG