Market basket analysis
Shopping basket analysis is used when you want to get down to effective cross-selling, i.e. selling related products. Once you have a great number of one-shot-customers the analysis yields results in the form of increased related products sales.
Using the shopping basket analysis you easily discover what is missing in the basket of every single customer depending on what he has bought. Then you just offer the right product. As simple as that. Pioneers of this technique are for example Amazon or McDonald’s. Just try buying only one thing from them.
What does it bring to me?
Pros of this technique are obvious – increase in sales; but not necessarily only in accessories. Some items in your product list are related only on the level of customer’s lifestyle. One would easily come up with the combination of a chair and a table, or a shirt and a tie. But would you think of the existing combination of a tie and socks? Beer and diapers? Also these strange relations can increase your sales substantially when combined with other existing rules.
Rules for existing relations can be used for example for these purposes:
- Placement of related products on the web
- Personalized offers in mails
- Choice of customers to be addressed
- Organizing products within your store
- Training of your employees about product combinations
Packages of related products
Output you get is first of all the set of all strong rules. Often people ask for more. They ask us to personalize their marketing communication with customers, to help them build automated system of related-product-offers (known as Next best offer) etc.