Devy Ratnasari

In 2017, we experienced consistent growth in acquiring new customers on a weekly basis. However, it has been declining starting from January 2018. We must take immediate action and develop a fresh business strategy to reverse this trend take immediate action and develop a fresh business strategy to reverse this trend. One possible approach is to launch a compelling marketing campaign targeting potential new customers. For example, we can introduce an enticing introductory voucher exclusively for new customers or offer free shipping for first-time customers who meet a minimum purchase requirement. These initiatives aim to attract and engage new customers, revitalizing our customer acquisition efforts.

The majority of our customers are concentrated in the state of California with 577 customers, indicating a strong customer base in that region. However, it is worth noting that we currently have only one customer residing in the state of Wyoming, representing a unique outlier in our customer distribution.

The retention rate initially started at a low level in the first quarter of 2017 but has shown significant growth, reaching a substantial 54.5% over a four-year period. This positive trend indicates a high level of satisfaction among our customers regarding the value our business provides. However, it's important to note that despite this impressive rate, nearly half of our customers have not returned for subsequent transactions. To address this issue and reduce customer churn, we must actively collect feedback from our customers. This feedback will help us identify areas of improvement within our business system, ensuring a better overall experience and increased customer loyalty.

It is evident that a significant portion of our customers have engaged in multiple transactions, with a noteworthy number having made five or more orders. Delving deeper into these clusters, we found that the most frequently ordered product categories were paper and binders. This observation aligns with expectations, considering that office supplies like paper and binders typically require regular replenishment. However, when we examined the cluster of customers who made just one order, it became apparent that half of them had purchased furniture. This finding is in line with the nature of furniture, as it typically serves a longer-term purpose.
To encourage sustained patronage, we are considering the implementation of a point-based system. This proposed system would reward our existing customers with vouchers that can be redeemed for future purchases, thereby incentivizing continued engagement and fostering customer loyalty.

A concerning finding emerged after conducting a detailed investigation into the sub-categories and analyzing their sales, profit, quantity sold, and sales patterns. Tables and bookcases, despite generating substantial sales volume, resulted in losses for our business. Despite the significant quantity sold, these categories failed to generate any profit. Interestingly, copiers emerged as the most profitable in terms of profit percentage among the analysed categories. This finding indicates the potential for further exploration and understanding of the factors contributing to the losses incurred by tables and bookcases. In order to gain insights into the causes behind these losses, a deeper investigation is warranted. We need to examine various factors such as cost structure, pricing strategies, production efficiency, and other relevant aspects to identify the underlying reasons behind the unprofitability of these categories.

As we analyze the profit and sales chart spanning from 2017 to 2020, notable patterns emerge. December 2019 stands out as the most profitable month, generating a revenue of $17,885. On the other hand, January 2018 recorded the highest losses during this period. Additionally, November 2020 witnessed the highest sales, reaching an impressive total of $118,448. However, it is worth noting that approximately 20% of the days in this month resulted in no profitability. These insights highlight the fluctuations in profitability and sales throughout the analyzed timeframe, emphasizing the importance of understanding the underlying factors driving these trends.

As we examine the shipping preferences of our customers, we observe that 59.7% of them opt for the standard class shipping mode. However, when we evaluate the average processing time required for orders to be shipped, we uncover a notable delay of nearly 10 days. This extended processing time could potentially contribute to customers not returning to our business, as it exceeds their expectations and may be perceived as a hindrance to a seamless shopping experience. To address this issue and enhance customer satisfaction, it is imperative that we focus on improving our supply chain management. By streamlining and optimizing our processes, we can expedite order processing and reduce the overall turnaround time, ensuring a more efficient and prompt delivery experience for our valued customers.

This data analysis reveals the following key points:

• Customer Acquisition: New customer acquisition experienced consistent growth in 2017 but declined since January 2018. A fresh business strategy, such as launching a compelling marketing campaign with enticing offers, should be developed to reverse this trend and attract new customers.
• Customer Concentration: The majority of customers are concentrated in California, indicating a strong customer base in that region. However, the company should consider expanding its customer base in other regions to reduce risk and dependency on a single state.
• Customer Retention: The retention rate has shown significant growth over four years, indicating customer satisfaction. However, almost half of the customers have not returned for subsequent transactions, emphasizing the need to collect feedback and make improvements to reduce churn and increase customer loyalty.
• Purchase Patterns: Many customers make multiple transactions, with paper and binders being frequently ordered products. However, customers who make only one order often purchase furniture, which aligns with furniture's longer-term purpose. Marketing and retention strategies can be tailored based on these patterns.
• Customer Loyalty: Implementing a point-based system to reward existing customers with vouchers for future purchases can encourage sustained patronage and foster loyalty.
• Profitability Analysis: Tables and bookcases generate substantial sales but result in losses, while copiers are the most profitable category. Further investigation is needed to understand the factors contributing to the losses and identify opportunities for improvement.
• Profit and Sales Patterns: Notable patterns emerge in profit and sales over time, highlighting the most profitable and loss-making periods. Understanding the underlying factors driving these fluctuations is crucial for decision-making.
• Shipping Preferences and Processing Time: Most customers opt for standard class shipping, but the average processing time is delayed, potentially affecting customer satisfaction. Improving supply chain management and streamlining processes can enhance efficiency and reduce turnaround time.