Analyzing ecommerce data in Tableau

1. Analyzing ecommerce data in Tableau

Hi all, and welcome to this case study. My name is Dev, and I'll be your instructor.

2. What is a case study?

So what is a case study exactly? A case study allows you to apply your skills. You won't learn any new concepts, but you'll have to combine the skills you learned earlier to solve a real-world problem. In this case study, you'll work with a fictitious dataset from an online pet supply company called Munchy's. You will apply the techniques from these courses. Let us review the structure of this course.

3. How is this course structured?

This case study consists of three chapters. In chapter 1, we will build a data source and understand the opportunities for sales growth. In chapter 2, we will focus on shipping cost optimization. And finally, in chapter 3, you will build an executive dashboard and present your findings to the executives of Munchy's. Let's cover the basics of ecommerce operations.

4. E-commerce operations and terminologies

This is an illustrative example of the total costs for canned pet food through various stages in the supply chain. In this example, for a $20 purchase of canned pet food, $4 goes to the manufacturer. This is also called as cost of goods sold or COGS. $1.5 each is spent on freight and fulfillment. This includes the cost to ship a product from the manufacturer to the warehouse and the warehouse storage fees. Last-mile delivery to customers costs $5. This leaves a profit markup of $8 before administrative costs. Let us now look at the dataset.

5. The data source

We will be using a fictitious data source for product sales. The data is located in four CSV files. The sales table is the primary transaction table. The product and customer tables contain additional attributes. The state mapping has consistent values for locations. You will be creating relationships between four tables in your exercise. A relationship in Tableau is a logical definition of a join without the join type information (for example, left or right). Let us review Munchy's business objectives.

6. Munchy's business goals

Munchy's pet supply has two primary business goals. The first is to serve as many customers as possible and increase sales. The second is to reduce its operating expenses. In this case study, you will act as a consultant to Munchy's. You will advise on how to increase sales and reduce expenses. Let us begin with the opportunities for sales growth.

7. Increase sales

For sales growth, you will focus on upsell and cross-sell opportunities. In a cross-sell, you promote a relevant product at the point of purchase. For example, when a customer is ready to buy a beach umbrella, present an offer on beach chairs. In an upsell, you promote a higher-priced alternative or a higher quantity of a product. For example, when a customer buys pet food regularly, present an offer on organic food.

8. Shipping expense reduction strategies

For shipping cost reductions, we will explore the following alternatives. Consolidating multiple shipments into a single one. Shipping from a location closer to customers. Reducing package size dimensions and weight. And, finally, shipping a higher quantity of a product.

9. Market basket analysis

A market basket analysis aims to find products frequently bought together in a single checkout. This is determined by finding out the correlation coefficient between purchased quantities. The value indicates the strength of the linear relationship. In this illustrated example, milk and bread correlate more strongly than milk and butter.

10. Let's practice!

We have now discussed the operations of Munchy's pet supply business. We have also reviewed the dataset. We are ready to analyze this data and help optimize Munchy's business operations. Let's practice!

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