Data Analysis & Decision Making Flashcards

A florist's point-of-sale data reveals that customers who buy flowers for birthdays return on average 4.2 times per year. This metric is most useful for:

Answer: Designing a birthday reminder subscription or loyalty campaign

High repeat purchase frequency for birthdays makes subscription or reminder programs highly effective at capturing that predictable demand.

A floral shop wants to evaluate whether to add a new product line. The decision framework should prioritize which data first?

Answer: Gross margin, demand signals from existing customers, and storage requirements

Profitability, demonstrated demand, and operational feasibility form the core evidence base for a product expansion decision.

Monthly financial data shows that overhead costs grew 20% while revenue grew only 8%. Which action is most directly indicated by this trend?

Answer: Conduct a line-item overhead audit to identify and reduce controllable costs

When overhead outpaces revenue growth, a detailed audit identifies specific cost drivers that can be reduced or eliminated.

A designer reviews event data and finds corporate clients represent 15% of orders but 35% of total revenue. This data suggests:

Answer: Corporate clients should receive dedicated sales attention and service tiers

A disproportionately high revenue share justifies dedicated resources to retain and grow the corporate segment.

A florist uses a simple A/B test: half of email subscribers receive a 10% discount offer, the other half receive a 'free vase' offer. Open rates are equal, but the free-vase group converts at 18% versus 11% for the discount group. What should the florist conclude?

Answer: The free-vase offer is more effective and should be adopted as the primary promotion

A consistently higher conversion rate on the same open rate volume is sufficient evidence to favor the free-vase offer.

A floral designer tracks that the average cost to acquire a new customer is $28, while the average customer lifetime value is $210. What does this 7.5:1 ratio indicate?

Answer: The acquisition investment is generating strong returns and marketing spend can be increased

A lifetime value to acquisition cost ratio above 3:1 typically indicates healthy unit economics that justify increased marketing investment.

A florist's data shows that arrangement returns and replacements cost $1,800 annually, primarily tied to one perishable variety. The data-driven decision is to:

Answer: Replace that variety with a more reliable alternative and recalculate total cost savings

Substituting the problematic variety and measuring the resulting cost reduction validates the decision with concrete data.