Problem / Objective

An e-commerce and financial technology company, when seeking to increase the sales of its footwear category, approached the Aptus Data Labs for a solution. The client is an e-commerce and financial technology company that offers B2C services for consumers and has around 17 fulfilment centres across India while partnering with more than 40 courier companies. The client also wanted to increase the GMV (Gross Merchandise Value) by optimizing the amount of cashback or discount to be given to customers.

Solution / Approach

Aptus Data Labs developed an AI-based analytics model to process the existing data of sales and revenues of the eCommerce firm. Two main objectives were identified: a) Increase category user visibility by navigating a greater number of users from the home page to the category page to place orders. b) Improve conversions by offering the right cashback or discount. The following process was followed to prepare the data and build the ML model:

Prepared the relevant data by generating the “Sale Type” attribute to identify the sale period.

Removed outliers and non-correlation variables to build an efficient model.

Sampled data to improve the distribution and variance of the data.

Applied the correlated matrix to consider only correlated attributes for processing.

Built a deep learning model to predict cashback for a given GMV target using historical data.

Utilized this 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 appropriate banner position of current offers to maximize clicks and reduce bounce off.

Implemented another deep learning model to predict optimal GMV based on optimal cashback results.

Impact / Implementation

The deep learning analytics model was able to predict the optimal GMV and cashback with an accuracy of 90%, which was much higher than other research methods utilized by the eCommerce firm. The model enabled the eCommerce firm / client to execute the solution for every footwear brand and subcategory across its online catalog. The client was able to plan and improve the conversion rate, thus increasing sales. The client was able to predict the optimum banner position and idea racking to get the maximum conversion.

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