Enabled an e-commerce company to increase sales by predicting the right cashback/discount to increase GMV%
Converting Clicks to Sales with AI Analytics for Footwear
About the Client
The Business Challenge
The client wanted to increase the sales figure for a particular category (footwear) by improving the conversion rate. Additionally, they also wanted to increase the GMV (Gross Merchandise Value) by figuring out the right amount of cashback or discount to be given.
What Aptus Data Labs Did
We built an AI-based analytics model to process existing data and predict optimal GMV and cashback to solve the business challenge.
The Impact Aptus Data Labs Made
We had to work on two main objectives that were:
- Increase category user visibility by getting more users from the home page to the category page to place orders.
- Improve conversion by offering the right cashback or discount.
Moreover, we used the following process to prepare data and build the ML model to meet the above two objectives. Aptus Data Labs:
- Prepared data by generating SALE TYPE attribute to identity the sale period
- Removed highly correlated variables, as they can lead to introducing multicollinearity and issues with model performance
- Sampled data to improve the distribution and variance of the data
- Built a deep learning model to predict cashback for a given GMV target using historical data
- Used the model to predict idea racking to give maximum conversion using historical data of click rates and past conversion lists
- Utilized the model to predict the banner position of current offers to maximize clicks and reduce bounce offs
- Implemented another deep learning model to predict optimal GMV based on optimal cashback results
- Optimized both the models for efficiency and accuracy
Tools used
- RapidMiner
The Outcome
The deep learning analytics model was able to predict the optimal GMV and cashback with an accuracy of 90%. Moreover, the model enabled the client to execute this solution for every footwear brand and subcategory with sufficient data points. Therefore, the client could also plan and improve the conversion rate increasing sales. Hence, the client was able to predict banner position and idea racking to get the maximum conversion.
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