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End-to-end Revenue Leakage & Funnel Optimization project using real ecommerce behavior data. Tracks user actions across sessions, identifies funnel drop-offs, simulates conversion uplift, and forecasts ROI using Python, SQL, Excel, and Power BI

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Ecommerce Funnel Optimization & Revenue Leakage Analysis


I. Problem Statement

The subject ecommerce platform, despite robust inventory operations and high product exposure, exhibits critical conversion inefficiencies, customer retention shortfalls, behavioral friction, and monetization gaps across its digital sales funnel. Based on a cleaned dataset of ~346,000 user sessions across 303,000 users (post bot-detection filtering), this project investigates performance against 2024–25 global ecommerce benchmarks and proposes targeted, tool-based interventions.


II. Problems to Be Solved

Problem Area Observed Metric Benchmark / Standard
Poor Customer Retention Loyal Buyer Rate = 0.06% Benchmark = 0.5–2%
Repeat Engagement Failure Repeat Purchase Rate (30d) = 3.6% Benchmark = 8–10%
Funnel Leakage at Cart Stage Cart to Purchase Rate = 28.9% Industry Leaders ≥ 40%
Wishlist Conversion Failure Inactive Favorite Leakage = 93% Desired Max ≤ 50%
Delayed Conversion Latency Avg. Conversion Latency = 14.9 hrs Benchmark ≤ 12 hrs
Low Session Retention Session 1→2 Retention = 29.5% Benchmark = 35–45%
Limited Product Monetization Only 1 High Performer SKU in dataset Benchmark: 0.1–1% portfolio share
Category-Level Drop-offs Significant χ², Cramér’s V = 0.185 Category matters → UX prioritization
Time-Based Conversion Inefficiency Evening peaks statistically significant Campaigns not aligned

III. Dataset Schema (Post-Cleaning)

User & Product Identifiers

  • user_id
  • product_id
  • category_id

User Actions & Behavior

  • action
  • converted
  • favorited
  • carted
  • viewed
  • action_count

Time & Session Features

  • timestamp
  • date
  • day_of_week
  • is_weekend
  • hour_of_day
  • minute
  • second
  • time
  • day_label
  • day_type
  • cohort_day
  • days_since_signup

Session Tracking

  • prev_action
  • next_action
  • action_sequence
  • time_diff
  • new_session
  • session_id
  • session_duration
  • session_hours
  • session_bin

Segmentation & Enrichment

  • user_segment
  • duration_segment
  • hour_segment

IV. Statistical Tests Conducted

  • Chi-Square Test for Categorical Association
  • Cramér’s V for Effect Size
  • Welch’s T-Test for Unequal Variance Mean Comparison
  • One-Way ANOVA for Multi-Group Variance
  • Proportion Z-Test for Conversion Fluctuation
  • McNemar’s Test for Cart→Purchase Asymmetry
  • Cohen’s d for Practical Mean Differences
  • Cross-tabulation visual analysis

V. Core Solution Framework

II. Phase-Specific Solution Framework (Post-EDA)

A. SQL – Action-Oriented Views & Campaign Eligibility

SQL is no longer exploratory—it serves as the decision engine, producing tactical datasets and eligibility views for downstream execution.

Objective SQL Output Description
Cart Abandonment Recovery User–product pairs who carted but never purchased within 48–72 hrs
Wishlist Activation Targeting Users who favorited but did not cart or buy, with timestamps and product IDs
Loyalty Campaign Launch Users with 1+ past purchases, >30 days since last purchase, and 2+ sessions
Latency-Based Targeting Product–user pairs with high time-to-purchase metrics
High-Potential SKU Curation SKUs with high views or favorites but low conversion rates
Time-Sensitive Campaign Prep Segment purchases/views by hour, flag for scheduling alignment
Monitoring Tables for Retention Weekly cohort retention aggregates for Power BI and Excel

B. Excel – Revenue Forecasting & Scenario Simulation

Excel is used to model business impact of interventions and forecast revenue lift based on SQL-derived targeting logic.

Problem Area Observed Metric / Gap Industry Expectation / Opportunity
High Cart Abandonment 18440+ carts abandoned → low recovery rate 11440 carts have recovery potential out of which 20-30% can be converted Recovery campaigns can yield ₹2–6L gain
Ineffective Wishlist Conversion Wishlist SKUs show 93% inactivity Activation of top 10% = ₹5L+ opportunity
Loyalty User Shortfall Only 0.08% users loyal → below 1% threshold Strategic push to 1–2% = 231% uplift
Hour-Level Inefficiency Non-optimized campaign timing ROI peaks in 6–11AM & 9PM–5AM
Latency Friction in Conversions Avg. Time to Convert ~14.9 hrs Goal: Reduce by 20–40% via segmenting
SKU Attention Without Conversion High views/favorites, low buys Targeted SKU monetization opportunities
Cohort Retention Drop-Off Sharp decay post-week 2 Retention uplift via time-sensitive nudges

C. Power BI – Executive Visibility & Strategic Impact Dashboards

Power BI enables real-time performance monitoring, scenario-based forecasting, and behavioral deep dives using SQL output views and Excel-based simulation layers. Each dashboard is tailored to isolate key revenue and retention gaps while offering actionable clarity for marketing, product, and CRM teams.

Dashboard Title Purpose / Business Objective
Ecommerce Funnel Overview Holistic funnel leakage view from views → conversions, with segmentation filters
Ecommerce User Behavior & Conversion Intelligence Deep user segmentation by action type, frequency, and conversion history
Boosting Checkout: Cart Recovery Strategy Visualize revenue leakage via abandoned carts and simulate impact of recovery campaigns
Revenue Uplift Strategy – High-Impact SKUs Monetization insights from highly viewed/favorited but under-converting SKUs
SKU Monetization Strategy: Conversion Lift & Focused Targeting Drilldown on SKU attention vs. conversion lag for targeted monetization
Retention Uplift Strategy – Daily Cohort Performance Retention decay curves across cohorts with improvement tracking scenarios
User Loyalty Segmentation & Revenue Forecasting Maps loyalty tiers and forecasts potential revenue from loyalty-based campaigns
Campaign Simulation: Gold/Silver User Patterns & Scenarios Behavior-based targeting and campaign personalization for loyal vs. occasional users
Simulated Campaign Impact on Latency & Conversion Speed Benchmarks speed of conversion under campaign vs. organic segments
Strategic Campaign Simulation: Wishlist-to-Cart Revenue Lift Projected gains from converting inactive wishlist actions into carts
Wishlist SKU Conversion Forecasting Conversion and revenue projections under Conservative, Benchmark, and Best-Case assumptions

IV. Implementation View

This phase transforms insights into data products and execution logic. Segmentation, behavior tagging, and statistical findings from Python-based EDA are now activated via:

  • SQL → Materialized views and targeting pipelines
  • Excel → Strategic simulations for prioritization and investment
  • Power BI → Communication layer for monitoring, buy-in, and decision cadence

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End-to-end Revenue Leakage & Funnel Optimization project using real ecommerce behavior data. Tracks user actions across sessions, identifies funnel drop-offs, simulates conversion uplift, and forecasts ROI using Python, SQL, Excel, and Power BI

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