Revenue Drop

Requirements Clarification & Assessment

1. Understanding the Problem:

   • The primary goal is to identify factors contributing to the revenue decline in an online retail company.

2. Data Understanding:

   • Transaction Data Available:
     • Sale date
     • Total amount spent by customers
     • Profit margin per unit
     • Quantity sold
     • Product category and subcategory
     • Source of marketing attribution
     • Percentage discount applied

3. Clarifying Questions:

   • Revenue Definition: Clarify how revenue is calculated (e.g., gross sales minus discounts and returns).
   • Sales Channels: Determine if sales data is segmented by online or offline channels.
   • Geographical Scope: Confirm if the data is global or limited to specific regions.
   • Historical Data: Verify if data from previous years is available for comparison.
   • Competitor Analysis: Gather information on market conditions, such as new competitors or economic shifts.

4. Potential Factors to Investigate:

   • Drop in sales volume or transaction count
   • Changes in profit margins
   • Increased marketing costs
   • Changes in customer demographics or behavior
   • External factors, such as market trends or seasonality