← Boston Consulting Group Interview Insights
Frame the problem as a causal inference task, not just prediction, and propose a quasi-experimental design like difference-in-differences or synthetic control to isolate campaign lift from confounders. Walk through the target variable (SKU-level sales or units), predictors (campaign exposure, seasonality, price, promotions, competitor activity), model choices (e.g., DiD, causal forests, or Bayesian structural time series), and validation (pre-period fit, placebo tests, holdout). Emphasize how findings translate into actionable campaign optimizations.
Pro tip: Acknowledge that randomized experiments are often infeasible in retail, so you'd leverage natural experiments and robustness checks (e.g., placebo tests, sensitivity analysis) to build credibility with the client. Also, quantify lift in business terms (ROI, incremental margin) to make the analysis actionable for executives.
Clarify the estimand: average treatment effect on the treated (ATT) for campaign-exposed SKUs. Choose a target variable like incremental sales or units, and define treatment/control groups carefully (e.g., exposed vs. matched unexposed SKUs).
Include campaign exposure, seasonality (week, holiday), pricing, promotions, competitor actions, and SKU-level fixed effects. Consider lagged sales and external factors like weather or economic indicators if available.
Propose difference-in-differences (DiD) with SKU and time fixed effects, or synthetic control for SKUs with no clean control. For heterogeneous effects, use causal forests or meta-learners. Mention Bayesian structural time series for time-series counterfactuals.
Validate using pre-period fit, placebo tests on pre-campaign periods, and out-of-sample holdout. Check parallel trends assumption for DiD, and conduct sensitivity analysis for unobserved confounders.
Quantify lift and ROI per campaign, identify which SKUs/segments respond best, and recommend targeting, timing, and budget allocation changes. Discuss caveats like spillover, cannibalization, and long-term effects.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.