Evaluation Metrics and Transfer Learning for Sales Prediction

Sales prediction plays a huge role in modern business strategies. One of it's many use cases revolves around estimating the effects of promotions. While promotions generally have a positive effect on sales of the promoted product, they can also have a negative effect on those of other products. This phenomenon is calles sales cannibalisation. Sales cannibalisation can pose a big problem to sales forcasting algorithms. A lot of times, these algorithms focus on sales over time of a single product in a single store (a couple). This research focusses on using knowledge of a product across multiple different stores. To achieve this, we applied transfer learning on a neural model developed by Kantar Consulting to demo an approach to estimating the effect of cannibalisation. Our results show a performance increase of between 10 and 14 percent. This is a very good and desired result, and Kantar will use the approach when integrating this test method into their actual systems.