Data Analysis & Decision Making Flashcards

A florist notices that 80% of complaints relate to late deliveries on Fridays. Using this data, the best corrective decision is to:

Answer: Add a dedicated delivery driver or reduce Friday order capacity

Addressing the specific bottleneck—insufficient Friday delivery capacity—directly resolves the identified problem.

Reviewing annual data, a florist finds average transaction value is $62 for phone orders versus $47 for walk-in sales. This difference most likely suggests:

Answer: Phone customers plan larger, custom orders with more lead time

Phone orders typically involve planned, customized arrangements, which naturally result in higher transaction values.

A designer tracks that adding a 'recommended add-on' prompt at checkout increases average order value by $12. If 200 orders are placed monthly, what is the monthly revenue increase?

Answer: $2,400

$12 upsell × 200 orders = $2,400 additional monthly revenue.

A florist's data shows referral customers have a 3× higher lifetime value than single-transaction customers. This finding most strongly supports investing in:

Answer: A referral reward program to incentivize word-of-mouth recommendations

Amplifying the referral channel leverages the high-value customer segment the data identifies.

A floral shop's data shows spring arrangements account for 45% of annual profit despite representing only 25% of annual volume. What does this indicate?

Answer: Spring arrangements carry significantly higher profit margins than other seasons

Disproportionately high profit relative to volume reveals that spring arrangements command superior margins.

When a florist compares two marketing channels and finds social media costs $3 per lead while print advertising costs $18 per lead, the data-driven decision is to:

Answer: Reallocate budget toward social media while monitoring lead quality

Shifting budget to the lower-cost channel while monitoring lead quality ensures cost efficiency without abandoning potentially valuable audiences.

A designer's records show that orders placed more than 7 days in advance have a 5% cancellation rate, while same-day orders have a 0% cancellation rate. The best policy response is to:

Answer: Require a deposit on advance orders to offset cancellation risk

A deposit policy on advance orders reduces financial exposure from cancellations without eliminating a valuable order channel.