Unlocking DoorDash's Marketing Potential Through Targeted Insights

Why THIS Project?

A few nights ago, I found myself scrolling through the DoorDash app, debating whether to order some crispy nachos for dinner. As a regular user, I couldn’t help but wonder—what makes some people order more often than others? Is it their income, family size, or maybe even their favorite late-night cravings? This curiosity sparked my project where I dug into data to see how DoorDash could refine its marketing strategies.

What Readers Will Gain

In this article, I’ll share some important insights from my analysis. You’ll learn about different market segments that DoorDash could focus on, the reasons behind spending trends, and some surprising findings that might change how we view marketing strategies.

Key Takeaways

• Customers who accepted the 5th marketing campaign spent significantly more on average than those who accepted the 6th.

• Income levels account for 67% of the spending variance among users.

• On average, customers without children spent more than those with kids.

• There's a noticeable decrease in spending during November and December, with a bounce back in January and March.

Dataset Details

For this project, I used a modified iFood dataset—an equivalent to DoorDash in Brazil. It contains 2021 rows, featuring key columns like Income, MntTotal (the total amount spent), and Kidhome (the number of kids at home). This dataset was perfect for understanding consumer spending patterns and identifying segments that DoorDash could target more effectively.

The data can be found here.

Analysis Process

I started by cleaning and organizing the dataset in Excel to prepare it for analysis, as well as adding extra columns that were needed. I examined income levels, spending habits, and how many kids each customer had at home. Using visualizations, I was able to identify key trends and insights. One surprising result was that customers without children spent the most, which contrasted my initial assumptions that families would utilize DoorDash more frequently. Perhaps childless customers have more disposable income.

Visuals and Insights

Here’s a snapshot of my findings:

Spending Patterns Table:

• This table shows an average spend of over $600 more for customers who accepted the 5th marketing campaign compared to the 6th.

• This indicates that DoorDash might want to consider what made Campaign 5 more effective than Campaign 6.

Income vs. Spending Scatter Chart

• This chart illustrates a strong correlation (67%) between income levels and spending. Interestingly, there were a couple of outliers.

• One customer spent significantly more than their income, likely a data entry error, while another high-income individual spent very little. Perhaps they prefer home-cooked meals!

Pie Chart on Spending by Family Size

• The pie chart reveals that those without kids spent the most on average, while spending decreases as the number of children increases.

• This trend might be due to families having less disposable income after balancing childcare expenses.

Monthly New Customers Bar Graph

• The bar graph tracks new customer sign-ups by month, showing a drop in November and December but a rebound in January and March.

• This dip could be an opportunity for DoorDash to increase marketing efforts during the holiday season when many families are busy.

Main Takeaways

DoorDash can enhance its revenue by focusing on the more lucrative 5th marketing campaign. Targeting higher-income individuals and those without children seems to be a promising strategy. Additionally, there are opportunities to boost marketing efforts during the latter months of the year when sign-up appears lower.

Conclusion and Personal Reflections

This project taught me a lot about consumer behavior and market segmentation. It was fascinating to see how different factors influence spending patterns. One challenge I faced was interpreting the reasons behind certain trends, especially the spending differences among families. However, digging deeper into the data helped me find clearer insights.

Reflecting on this project, I feel more equipped to think critically about marketing strategies and how they can be tailored to meet various customer needs.

Call to Action

I would love to hear your thoughts or questions! Feel free to connect with me on LinkedIn (Rachel Orrell) or leave a comment below. Let’s continue the conversation!