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arXiv · 2006.04945

Gradient Boosting Application in Forecasting of Performance Indicators Values for Measuring the Efficiency of Promotions in FMCG Retail

Joanna Henzel·Marek Sikora
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Abstract

In the paper, a problem of forecasting promotion efficiency is raised. The authors propose a new approach, using the gradient boosting method for this task. Six performance indicators are introduced to capture the promotion effect. For each of them, within predefined groups of products, a model was trained. A description of using these models for forecasting and optimising promotion efficiency is provided. Data preparation and hyperparameters tuning processes are also described. The experiments were performed for three groups of products from a large grocery company.

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Joanna Henzel, Marek Sikora. 2020-05-30. Gradient Boosting Application in Forecasting of Performance Indicators Values for Measuring the Efficiency of Promotions in FMCG Retail. https://doi.org/10.15439/2020f118

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