This project goes over two important types of analyses and tools that can be done and employed on online sales data. The world of ecommerce is generating data in billions per hour today. A prudent approach and sound statistical techniques can unlock the hidden value resulting in better decision making.
User Life-time Value(LTV) is a measure that tells us how valuable is the user to the business and vice versa. This analysis is used in almost all the verticals today. Be it ecommerce, insurance or any other vertical, knowing what a customer is worth helps the business spend the right amount of resources and effort in the right direction.
Product recommendation Engine is the most widely used and most sophisticated tool being used and adopted by ecommerce and entertainment industry. It can be overlaid on the LTV model to suggest the best product for customers who belong to a certain range of LTV values.
Combined together these methods can boost the marketing campaigns and cause an uplift in online sales for an ecommerce company.