Carousel Product Recommendations

Requirements Clarification & Assessment

1. Business Goals:

   • Primary: Determine if replacing store-brand items with national-brand items in the up-sell carousel increases sales, profit, or customer engagement.
   • Secondary: Understand customer preferences between store-brand and national-brand products.

2. Current System Understanding:

   • The up-sell carousel currently showcases only private label products.
   • The goal is to evaluate the impact of substituting these with national-brand items.

3. Key Metrics:

   • Primary Metrics:
     • Margin per Add-to-Cart (ATC)
     • Conversion rate of carousel items
     • Average revenue per user (ARPU) from carousel items
   • Secondary Metrics:
     • User engagement (e.g., interaction time with carousel)
     • Basket size and checkout value
     • Customer satisfaction (e.g., survey ratings)

4. Constraints and Considerations:

   • Operational Constraints:
     • Inventory and supply chain capabilities for national-brand items.
     • Pricing strategies and promotional considerations.
   • User Behavior:
     • Preference patterns for store-brand vs. national-brand products.
   • Technical Constraints:
     • Ability to track and analyze data from the app effectively.

5. Hypotheses:

   • Null Hypothesis (H0): Replacing store-brand items with national-brand items has no impact on business metrics.
   • Alternative Hypothesis (H1): Replacing store-brand items with national-brand items improves business metrics.