Market Analysis of Door Dash Using Excel

Market Analysis of Door Dash using Excel

Created By: Dan Waterstradt

DoorDash is a leading food delivery option in the United States. The company wants to increase the effectiveness of its marketing. Therefore, DoorDash wants its data analytics team to provide information and recommendations on the best campaign and future direction of its marketing. The data provided was exclusively analyzed in Excel.

Business Questions:

• What is the total amount spent by customers?
• What percentage of the customers income was spent on Door Dash?
• Does the age of a customer affect the amount of money they spend?
• What is the average amount of money spent by each customer?
• What is the age range of the customers that are using Door Dash?

My Analysis:

• First, in Excel, I inserted a new column for "Customer ID". Then I sorted and filtered the data.
• A few of the business questions then came from the data aggregation I did. Using AVERAGE, SUM, MAX and MIN, I was able to get information pertaining to those business questions above.
• I then used different?formula (IF, SUMIF, COUNTIF). I was looking to find the percentage of customer's income vs. what they spent on DoorDash.
• Next, I wanted to know if a customer's age had any correlation to the amount of money they spent. To find this out, I inserted a new column that sorted the customers, by age, into 4 different age groups (24-35, 36-50, 51-65, and 66+).

Graphs:

• Next, I was able to use the sorted and filtered data to create multiple graphs. The first one I focused on was a Scatter Plot. This graph shows the "income" versus the "total spent". On this graph, I included the R-squared value. This value represents the percentage of variance, or more specifically, this shows, as accurately as we can, the income and total spent as defined by the R-squared value.

• The next graph I focused on was a Histogram of the Amount Total spent by customers:

• After these graphs, I wanted to dig deeper and aggregate the data further. Through Excel, I created a pivot table that showed the breakdown of customers into categories by age and how many kids they had.

• The final graph completed shows the number of new customers that were obtained each month.

• Once I had obtained all the data I needed, I used VLOOKUP to create a multi tab tool. This tool would enable the excel user to type in a customer ID and the return would show the exact amount the customer spent.

Insights:

• The average amount spent by customers was $562.76 for this period.
• The total spent by customers during this time was $1,240,896
• The ages between 51-65 spent the most amount of money with DoorDash. Thus, telling us that older age groups are spending more and more financially stable.
• The oldest customer in this group was 80 years old.
• There does not seem to be a direct correlation between the total income and the amount spent with DoorDash.

Recommendations:

After reviewing this data, it would seem that the age group of 36-50 had more overall users (predictably), however, the age group of 51-65 had spent more money. This leads me to believe that while DoorDash may be more popular within the age group of 36-50, the older group (51-65) has more stable and disposable income to use on things like delivery services.

One thing about this data that we can see is that there was a large increase in new users during this specific time. While this is significant, I would want to understand why and what was happening socially at this time to drive more users to the company. What would be specifically interesting is the increase (or decrease) in users during the pandemic and how those outside factors effected new and existing users.

Thank you for reading my article! If you enjoyed what I have presented here or have feedback for me, please connect with me!

Dan Waterstradt | LinkedIn