Analysis of User and Merchant Dropoff for Sugar App - Executive Summary
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| Background | Data Source | Methodology |
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Executive Summary
Executive Summary
The objective of project is to improve Sugar’s bottom line via Merchant, User and Geospatial Analysis.
User: Top 25% of the users contributes 75.4% of revenue
- Sugar may want to invest more effort in maintaining relationships with these users and understanding who they are, thereby attracting more of such users.
User: User growth explains 72% of revenue growth after 2 months; branch growth has little effect
- Between increasing user or branches, Sugar should focus more on users. Time lag should be taken into account when calculating marketing effectiveness.
User: Redemption peaks during tea-break, followed by lunch and dinner
- Sugar can use this data to improve its product offerings or push notification timings to reach out to more customers at these specific timings
Merchant: Segmentation of merchants into star and laggards.
- Sugar can make use of this segmentation to focus their efforts on improving merchant traffic flow (and thus building better relationships), by routing orders to laggards, and rewarding star merchant performance
Geospatial: Significantly less number of branches and orders in the West region.
- These are potential areas of growth for Sugar to expand.
Geospatial: Inverse relationship between distance of branch and redemption rate
- Sugar can focus on methods to shorten order distance to improve redemption rate, and thus get more repeat customers.
Geospatial: Derived a cannibalisation analysis model using shortest distance analysis
- Sugar can identify and help stores that are cannibalised by other stores of the same brand; improving overall potential earnings.
Geospatial: Explanatory Model linking user total value to order origin location
- Sugar can target areas with the highest spenders, namely: Kampong Ubi, Boon Lay Place, Kampong Glam, Marine Parade, Kembangan, Katong, Telok Blangah Drive, Bangkit, Kaki Bukit, Anak Bukit, to maximise and revenue.
