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Analyzing correlations between sales marketing and demographic data
1. Analyzing Correlations
between Sales, Marketing and
Demographic Data
ShiSh
Retail Industry Solutions Director
Microsoft Corp
Twitter: @5h15h
LinkedIn: http://linkedin.com/in/shishs
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6. •Watch out for Bias
•Check for Patterns, not Single
Matches
•Check Multiple Sources of
Information
Source: http://blog.8thandwalton.com/2013/02/correlation-is-not-causation-even-in-retail-link/
Correlation is not Causation
7. How Target Figured Out A Teen Girl Was
Pregnant Before Her Father Did
Shopping Patterns Reflect Life Changes
Data from Sales Corelated to Birth Registry to determine patterns
Attempt to get better customer insights & predict what customers want before they tell you
8. Example Scenario: Listening to the Voice
of the Customer
0
5
10
15
20
25
30
1995 1996 1997 1998 1999 2000 2001 2002
Sales Forecast
Traditional Cameras Digital Cameras
Extrapolated Forecast Actual Data
26. Correlation Coefficient
Quick Reference for calculation Pearson's Correlation Coefficient : http://bit.ly/1depeRL
• Impact of Weather on Sales
• How does the average age / income / education impact sales of specific
categories
• How does changes in gas price impact specific retail categories and
segments
• How does changes in unemployment rate affect retail categories