The Outsourced Data Analyst Case Study

Hi-Mommy

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Background

Hi-Mommy is a company that manufacturers textile products for new babies. The majority of their products are sold on Amazon.

Challenge

When the company started working with Stratagem, they were continually running a loss of around 30% a month. Tayyib Ali —  The CEO of Hi-Mommy approached Stratagem to rectify the situation and bring the company into profit, since they knew it was possible but just didn't know how to achieve it. 

After a consultation, Stratagem recommended using data analytics to track the revenues and costs.

Objective

The objective was to find a solution to increasing and maintaining profit through data collection and analysis.

Solution

After a consultation, Stratagem recommended using data analytics to track the revenues and costs. They helped Hi-Mommy create a system to track this data and a dashboard (see graphics) that summarized the findings. As a visual representation of the data and analysis, the graphs in the dashboard allowed the CEO to realize the analytical blueprint Stratagem had created for them.

From this analysis they were able to see why the loss was occurring. The promotional rebates, which Amazon businesses use,  were draining their revenue and any potential profit. Furthermore, they were able to tell from the customer data that most sales were occurring in California during specific times of the day and week. 

Stratagem recognised the opportunity for profit increase from this and made a series of recommendations for the way the products should be promoted on Amazon. These findings inspired Hi-Mommy to switch to a campaign style promotional strategy based on key words from the data. This new style of advertising allowed them to pinpoint their audience and only advertise when and where it was beneficial for them. Testing it against their revenue stream over a period of a few weeks showed a marked increase.

Results
This graph from Hi-Mommy's dashboard shows their profit over 5 months before and after working with Stratagem.

During the time Hi-Mommy worked with Stratagem they were able to increase profit by 60%, taking them out of the red and into a profit of 30%. In addition, they were able to create consistency in their profit generation which had before been fluctuating and uncertain.  

The COO said working with Stratagem “gave me the clarity and direction I needed to get out of a negative profit situation. Being stuck in the grind of day to day meant I needed a strategic, outside perspective which I most definitely got by working with Stratagem. I wish I had been working this way since day one because it would have saved so much money and time.” 

Stratagem's strategic focus helped Hi-Mommy find the most crucial opportunities from their data. In addition, Stratagem was able to build a sustainable system for analyzing new data and comparing it against previous data that did not require extensive intervention by the CEO. This system allows him to focus on growing the business with the advantage of a 360-degree view of the customer and sales data.

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