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Case Study

Understand how discounts affect consumer behavior

Analyze purchase history trends to determine the impact of discount campaigns on customer visits and purchases

Challenge

Our client is a Fortune 500 consumer product goods (CPG) company. The partners had suggested that BOGO offers may alter customer behavior, resulting in fewer trips with less overall revenue to the retail stores. Our client needed to understand the impact of discount campaigns on traffic and basket size to be able to continue engaging their retail partners to support their product campaigns.

Solution

We aggregated basket size and visits per retail location. We identified historical price discount campaigns from row level POS data across many retail locations. We evaluated store performance as a result of the campaign, with consideration for seasonal and general trends. We applied data science techniques to determine if certain discount types resulted in reduced basket size or store visits. Our analysis confirmed that campaigns of all types are beneficial to traffic and basket, confirming the CPG overall-marketing campaign strategy.

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