Predicting Marketing ROI for a Re-Commerce Company

The Customer

The customer is one of the largest e-commerce marketplaces for used cell phones & electronic devices. Their business model is the reverse of a typical e-Commerce company, where they take used electronic devices from end users and deliver them to refurbish specific electronic devices. Their electronic engine allows real-time bidding by several refurbishers providing the seller the market price for the used device.

Business Situation

The customer faced a challenge in assessing the feasibility of their business model. They wanted to predict Re- turn on Investment (ROI) before scaling up marketing expenses and expanding into other verticals.

Our Solution

Y Point carried out a green field data warehouse implementation. The solution helped the customer by collecting click-stream data (visit data), orders and marketing spend using a combination of open source and low cost but highly effective technology to make data ready for analytics. Within 6 months Y-Point consultants rendered an analytic solution that was able to achieve the following:

• Identify brand aware visits via search engine and online advertisements.
• Created a statistical model that was able to estimate future visits and revenue based upon TV channel spend. This allowed customer to increase the Marketing ROI.
• Expanded the data model to other digital marketing channels.
• Alter the customer business model by running several predictive scenarios to understand the feasibility of various pricing strategies to increase the number of transactions and hence revenue.