Impact of Operational Issues on Customer Behavior

Solution E-commerce Operations
Solution E-commerce Operations
Industry Retail
Region North America
Technology GCP
Context
This case study explores how we used our data analysis and created a custom solution for a leading retail giant, offering them better insights into their customer experience and behavior sectors. It explains how we created a solution to help them understand the impact of operational issues on customer behavior.
Problem statement

Our client, an eminent retailer, was facing struggles with stagnating membership conversion rates. They wanted to understand and quantify the impact of operational issues on customer behavior and NPS scores with relation to both existing members as well as those on a trial period. These issues were causing a significant loss to the company through reduced conversion and retention rates. MathCo co-created with the client a unique framework called ‘The Perfect Order’ which helped them highlight the reasons that imperfect orders were being carried out.

Impact

  • The estimated sales impact from improving the perfect order percentage is between $50 – $70 million.
  • Identified products that frequently led to stock-outs that were leading to imperfect orders. This was used to tune merchandising processes and models.
  • Created a list of stores which had the highest stock-out rates and delayed deliveries as a focus for store operations.

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