Transforming E-Commerce: How Smart Data and Strategic Moves Supercharged PHH Group's Growth

Background

PHH Group, a leading e-commerce entity in the Baltics and Finland, partnered with Analytical Alley to implement an advanced dynamic modeling system. This system was designed to create a comprehensive analytics ecosystem for PHH Group, ensuring comparable and holistic planning of offline and online media while predicting ROI across various channels. PHH Group operates across four countries, completing 5.9 million orders annually, with a turnover of 260 million EUR and 1.8 million active customers.

The Results

How We Did It

Analytical Alley created an analytical modeling system using real sales data from each brand and market data, including macro data (inflation, wages, seasonality), weather, competitor actions, and business activities.

Our methodology involved multivariate linear modeling to identify channel and business impacts on GMV. Results were fed into regARIMA and Random Forest models, ensuring high accuracy in GMV predictions.

Each month, Analytical Alley provided detailed, actionable insights beyond just investment values and estimated returns.

Why It Matters

E-commerce media strategies often rely heavily on Google Analytics, which can be off by up to 30% due to disabled cookies, sampled data, and regulatory restrictions. PHH Group needed a complete view, integrating offline media impacts and enhancing digital channel efficiency.

The Big Picture

This case illustrates the power of data-driven marketing optimization for e-commerce businesses operating across multiple markets.