Inventory Optimization with Marketing Insights of a US based online retail store

Abstract

Abstract: The current project attempts to gain insights about the customer lifetime value using the transactional data of a US based online store. Different period of analysis are used to calculate the churn and retention rates for CLV calculation. A separate approach of Cohort Analysis has also been adopted for CLV calculation and the effect of customer acquisition based cohorts on the same. Further, the effect of discounts given by the store on the customer acquisition and retention has also been included. Besides, getting the marketing insights through the transactional data, the same data has been used to study the inventory of the firm and calculations are done to bring optimization to the same based on various inventory related costs like handling and ordering cost etc. A generalized tool for inventory optimization and calculation of Economic order quantity has also been developed using Python and Tkinter Package for GUI development.