At Xabit Analytics, we pride ourselves on our ability to utilize advanced data analytics in order to help companies understand their business operations in ways they never thought possible.
In this three-part blog series, we will take a deep dive into the journey of the largest coffee chain in Nepal, Himalayan Java, and show how advanced data analytics unlocked hidden insights, leading to positive business outcomes and increased financial success. Join us as we delve into this exciting case study and discover how you too can revolutionize your business operations.
Established in 1999, Himalayan Java operated on the basis of monthly profit and loss statements. Annual financial statements were the basis of their long-term planning.
Since 2017, the company started to implement Point-of-Sales (POS) systems in each of their outlets, so they knew they had an enormous amount of transactional data but weren’t sure how to use it to make informed decisions. When we first met them in 2021, Himalayan Java was unaware of the drivers that were shaping their business as they remained hidden within their transactional data. We knew we could offer them something more.
By taking a deep dive into the transaction data from just one of their 30+ outlets, we were able to uncover a wealth of information that was previously hidden from view. Using advanced statistical techniques such as correlation analysis, regression analysis and market basket analysis to turn the raw data into actionable insights, we discovered that:
- temperature plays a significant role in the sales of certain products,
- certain holidays drive an increase in sales volumes,
- there are certain items that customers like to buy together (eg. egg + milk).
These drivers were, as we later discovered, not limited to just one outlet – they were applicable across the entire business.
The most exciting part of our deep dive was turning our analysis into recommendations. One marketing program that utilized the market basket analysis yielded a 292% ROI and the second, an on-going loyalty program, provided our client with a growth opportunity that continues to yield positive results.
At Xabit Analytics, we are proud to have played a key role in helping Himalayan Java understand which levers drive their business, and how to work those levers to make smarter decisions that lead to positive business outcomes. If you’re looking for a partner to help you unlock the hidden insights in your business, look no further than Xabit Analytics.
Anup, with significant help from ChatGPT