Analysis of User and Merchant Dropoff for Sugar App - Findings
Mid-Term | Finals |
---|
Exploratory Analysis
Merchants |
As we look towards Sugar’s merchant acquisition process over the past 2 years, there are several notable spikes.
For example, during the beta phase in February 2014, Sugar is trying to bring merchants on board before its official launch in July. There is also a noticeable spike in July 2015 which is probably due to Sugar’s campaign.
Looking at the CDF plot, we can see that the cumulative growth in number of merchants have slowly been tapering off. Currently, Sugar has 835 merchants compared to a total of 6,860 establishments in the food & beverage (F&B) services industry (Singstat, 2016). Sugar’s merchant pool only constitutes only 12.2% of the industry and this means great room for potential in acquiring more merchants.
Looking at the number of orders, the distribution is mainly right-skewed. Around 80% of merchants generate only 200 or less orders over the course of 2 years whereas the top 20% are able to generate up to 2,200 orders in total. However, we should take into account how many total revenue is also generated by these top 20% merchants. Thus, we will be looking more into the funnel plot analysis to identify these star merchants.
User Growth |
Orders |