Have you ever wondered when you are done with your purchases from a Super Market or on an ecommerce site how you or your spouse turned out to buy more Products than what you had in mind? Well there is a science behind this which directly or indirectly makes you to buy more products and its Market Basket Analysis aka MBA – the science of identifying customer behavior and their buying patterns, this analysis is more popular among the retail industry in the modern day.
Market Basket Analysis is a technique that helps retailers to recognize their customer behavior or to discover the relationship between the products based on buying patterns – be it in-store sale or online shopping. It helps retailers to get more bits of knowledge into customer behavior by breaking down:
- Weekend vs Week day sales
- Month end vs Month beginning sales
- Sales pattern during festival seasons
- Sales pattern in different climate
- Analysis based on customer profile eg. Teenagers, young parents, senior citizens, etc.
It helps retail store owners to drive business decision making, target marketing, and customer behavior analysis for optimizing profits. The retailers can utilize the gathered information to structure store layout and their advertising strategy. (Learn more about our Digital Ad Campaigns). MBA is extremely useful in driving recommendation engines while conveying targeted marketing.
Market basket analysis can be applied in the following distinctive approaches to support retail business:
- To create combo offers in view of items sold together
- To sort out and place related products/categories adjacent inside the store
- To decide the layout of the catalog in their ecommerce site
- To arrange diverse shopping trips for creating best shopping experience
In fact, Market basket analysis is a blend of association rule mining techniques to identify frequent patterns, affinities, connections or easygoing structure among different sets of items in the transactional database. Data scientists deal with a data set that comprises of various transaction records, each containing a set of items bought by a specific customer. (See how to optimize Marketing ROI through Analytics).
The overall data science research can help retailers in the accompanying practices:
- Finding the best product suggestion
- Characterizing market patterns
- Creating more appealing product sets
- Identifying sales seasons and products that go well
- Delivering superior customer experience
- Increased sales volume and profits
- Enhanced overall store performance
- Profit optimization
Our data scientists at Aspire are striving to assist retail business to take it to the next level, mail us or talk to our sales team…
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- Business Intelligence in Mobile Devices – An on road solution to gain insights into your Business - September 3, 2014