Accurate Sales Forecasting with Ensemble Modeling
One of the client’s main goals was to create precise sales forecasts by category; they also wanted a detailed picture of how their competitors would fare in the future. We used several forecasting techniques – including regression, causal models, trend analysis, and time-series models – to estimate the client’s growth over several years and compare it to the competition. This ensemble model delivered more accurate results than any one of its components could do alone; it also created a more robust system and made the best use of the available data.
Ensemble modelling enabled the client to:
- Do a deep dive into forecasted market shares. This included a breakdown by category as well as a look at the performance of major competitors.
- Allowed them to look at the inﬂuence of key factors (e.g. gas prices, consumer spending, GDP growth rate, etc.) and see their performance compared to other companies.
A Clear View
Consolidating several analytical techniques allowed us:
- To generate a strong, detailed AI model.
- Enabled our client to understand their market’s future dynamics and gave them new insight into their unique competitive advantage in the UK luxury car vertical.