The purpose of this analysis is to identify the sales pattern in Instacart and understand customer purchasing behaviors. The desired end result is to be able to implement a targeted marketing strategy based on the findings of this analysis.
Data
Data originates from Instacart's 2017 open-source dataset. If the dataset is temporarily unavailable on the original link, the dataset is downloadable here. A set of fabricated customer dataset (for analysis purposes) can be downloaded here.
Population Flow of Data
Cleaned, merged and analyzed 32 million rows of records
Derived at least 15 new columns for grouping and flags using various methods
Findings
Full report can be downloaded from the link above.
Saturday and Sunday are thebusiest day of the week while Tuesdays and Wednesdays are the slowest days.
Most orders occur around 10 - 11am during the day and remains busy between 1-3pm.
Based on random sample of the data, higher priced items (~ $16-17) are sold the most around the hours of 3and 5 of the day.
Produce, dairy & eggs are two of the most popular departments.
Married adults and senior makes a big percentage of the customers in this department
Demographic Findings
The senior group of more than 55 years old has the biggest customer share and this group has the most high-income percentage.
Most of the customers are married and most of the high-income earners come from this group.
Most of the married customers are mainly in seniors as well as the adults group and 100% of the divorced & widowed are the seniors.
The biggest single group comes from the adult age group
Recommendation
To boost up sales, it is recommended to run weekday promotions and ads on Monday to Friday targeting senior and adult group in regular customers as they make up the largest existing customer base and are the ones who make the most orders.
To encourage new customers to turn into regular and frequent customers, more ads need to be run on Thursday/Friday to notify them before the weekend peak and for promotions to be held on busy hours between10am to 4pm.
It is suggested to run more ads for higher priced items between hours of 3 and 5 of the day.
Instacart can focus on increasing the selection on Produce and Dairy & Eggs or ensure delivery of high quality freshness for these products in order to retain and get more spending customer
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