Power Bi Dashboard

About this project

As a result of the pandemic, Olist has experienced increasing sales, but now sales are declining. This can be addressed by the fact that for every 100 leads, 10 pay the SaaS license but only 4 become sellers in Olist platforms. Sales representative are not being effective at attracting new merchants which is also reflected in the total days it takes to go from lead to seller, 3.5 months. The sales peak from May to August, with 30% of sales coming from health & beauty, watches, and home décor.

Conversion: Leads to Sellers There were 8,000 leads according to the data base given, from which 842 became merchants and finally 380 are sellers. These shows a 4.75% of conversion rate, the channels with conversion rate higher than 50% are direct traffic, followed by paid search and other. Scooping into the process, we see that it takes on average twice the number of days to convert to merchant-to-seller than to convert lead-to-merchant. Being the total amount of days 115 in average, this is about four months, to improve sales the number of days must reduce. It shows that even if the merchants pay the SaaS there is something unconvincing about the services for them to take that long to start selling. As for landing pages, there are about 10 landing pages with 100% conversion rates but each of them had only one lead that was the one that became a seller. When we look closer, by highest number of sellers given, there is an average conversion rate of 10% for the first three landing pages, who give us about 50% of the sellers.

DISC Model Olist implemented the DISC Model as a way to understand the leads behavior for better targeting and, in that way, incrementing their number of sellers in the platform. From the information given, the conversion rates of merchants with DISC labels are about 8% lower than the no DISC ones. Regarding sales, the DISC sales are 3.4x higher than the no DISC ones. Even though C-type and S-type have conversion rates of about 45%, S-type has 87x higher sales than C-type. C-type people make decisions at a slow pace rhythm, analyzing every step of the process, pros and cons which means that if they are not selling as much it could give an insight that there may be something wrong with the platform. As for days to convert, DISC types convert 20 days faster than No Disc ones. Specifically, C-type and D-type take almost the same number of days in average to convert in sellers; D-type persons are assertive, like challenges and are high-paced persons so it is a red flag that they take that long to convert. This can have two explanations, the first one is that there have been a classification error which needs to be addressed with the sales representative team. The other explanation, in line with what was mentioned above, is that the services are not meeting the merchants’ expectations thus, causing them not to want to sell.

Reviews Customers leaving reviews help analyze which sellers are performing better than others. In this case the reviews alone would not help because most of the sellers that had 5 star reviews only had one order, in line with that a new measure was created to analyze the performance of the sellers. It considers number of orders, sales, and the average of the reviews per seller. For each of the variables, buckets were created to give a weight according to their values, then values were assigned to those buckets. For the final measure, each bucket value was multiplied by a ponderation according to what is more important to Olist. As they wanted to measure their seller’s efficiency a higher weight was given to sales, then orders and finally reviews. The weight between these three variables is similar given the fact that all of them measure the performance of a seller in a different way. From the above analysis, the bottom 5 sellers have less than four orders and since their last bad review they have not been selling more. Unlike the top 5 sellers who have constant selling flow, most of them do not have a peak but they maintain a constant number of sales during the time analyzed. Also, almost 70% of the monthly reviews are over 4 stars which can be inferred as the fact that clients accept our sellers and that they are going to keep coming back.

Recommendations • Increase the conversion rate for sellers by at least 10% by the next semester. This would be track every two weeks and represents an additional 6 sellers per month. • Keep up the DISC Model and review a sample of at least 40% of total sellers to double check the sales representative classification. Review monthly, and evaluate the results in quarterly meetings. • Reduce the number of days of conversions to less than 90 days by incentivizing merchants to sell through campaigns or discounts on freight costs. Review quarterly per business segment.

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