Analysis of sales methods
Pens and Printers is a leading office product company. It's looking to launch a new product line, but it's unsure which sales method is most efficient in terms of time investment and financial return. It's currently using three simultaneously, but is experiencing issues with equipment performance and resource allocation.
Sales methods used by the company
The company uses 3 different sales methods, each consuming and requiring a specific effort:
Email: Informative emails were sent to customers with minimal team effort.
Call : Phone calls of approximately 30 minutes were made to each client by the sales team.
Email + Call : An email was sent followed by a 10-minute call to address specific customer needs.
The objective of this analysis is to identify the most effective and time-efficient method to maximize revenue.
TOOLS USED
SQL (PostgreSQL)
Data standardization
Handling duplicates
Python (Pandas, Numpy, Seaborn, Matplotlib, SQLAlchemy)
Loading data into SQL
Data cleaning (NULLs)
Exploratory analysis (EDA)
Data visualization
Loading and cleaning data
Database obtained from DataCamp and loaded into PostgreSQL with SQLAlchemy.
No duplicates were found after validation in SQL.
Standardizing columns with TRIM() and correcting typing errors.
Null values in “Revenue” treated in Python using the group median , due to their skewed distribution.
Outliers in years_as_customer treated by filtering and segmenting according to the table's instructions
EXPLORATORY ANALYSIS
Approaches for each sales method
During the initial exploratory analysis, I wanted to understand how frequently each sales method was used. This gave me a general idea of how the company approached its customers:
It was evident that the email method was the most used to approach customers.
The combined approach (Email + Call) was the least frequent , with a significantly lower volume, representing only 34% of the Email method.
Income distribution
-
The most common revenues range between $40 and $100.
-
The distribution shows several peaks across the entire range, suggesting the presence of customer subgroups or product categories with similar behaviors.
-
This represents an opportunity to apply more targeted marketing strategies.
Income distribution by method
The Email + Call method has the highest median revenue, at nearly $185 per interaction , far surpassing the other methods.
It generates almost twice as much revenue as email alone and four times more than calls alone.
This suggests that combining channels can be significantly more effective in terms of value per sale.
Total income by method
The Email method generated the highest total revenue, approximately $720,000 , driven by its high volume of contacts.
The Email + Call method reached nearly $470,000 , or 65% of total email revenue, but with only 34% of the contacts. This indicates a high efficiency per contact.
The Call method was the least profitable, with revenues just over $200,000.
Median number of products sold per contact
Email and Call methods have a similar median of 10 new products sold.
The Email + Call method stands out with a slightly higher median of 12 products and a broader range.
Total income by method
All methods show a progressive increase in revenue over the weeks following product launch.
By week 6, revenue had increased:
86.99% with calls ,
75.92% with Email + Call ,
and 49.48% with Email .
In absolute terms, the Email + Call method had the greatest growth , with an increase of $97,875 , more than double that of the other methods.
Differences between groups by sales method
No significant differences were found between the sales methods in terms of customer seniority, website visits, or geographic distribution, which rules out bias and suggests comparable conditions between the groups .
KEY PERFORMANCE INDICATORS (KPIs)
Since our goal is to identify the most effective and time-efficient method , I recommend using the following key performance metric (KPI):
Median revenue per customer interaction, segmented by sales method.
Current results:
Call: approximately $49 per interaction.
Email: approximately $96 per interaction.
Email + Call : approximately $185 per interaction.
This KPI allows you to balance performance and time investment , making it ideal for comparing approaches and making strategic decisions for the future .
RECOMMENDATIONS
Eliminate the call-only strategy
It is time consuming and the least effective.Automate and maintain the email channel
It is scalable and generates good total revenue.Scaling the combined approach (Email + Call) for high-potential clients
It is the most effective method by interaction.Monitor median revenue per interaction weekly
Allows for continuous evaluation of results.Improve data tracking, especially:
Time spent by type of approach.
Balance in the number of approaches between sales methods.
FINAL CONCLUSIONS
The Email + Call approach offers the highest return per interaction.
Email is the best option for scalable and automated strategies.
The call-only method is not profitable .
This analysis allows for the optimization of commercial resources and guides future decisions in product launches.