Market Basket Analysis & Product Bundling
Using Market Basket Analysis, our experts help you understand which product bundles are being purchased together by your customers, and in what sequence. Understanding the product combinations and the strength of these relationships is valuable information that can be used for making recommendations, cross selling and up selling, and offering coupons and promotions. Just a few years ago, Netflix offered a $10 million prize to improve the efficiency of its recommendation engine. Using our advanced algorithmic techniques, we have the ability to build recommendation algorithms that can outperform the engine Netflix built by 10 times. Here are some of the things we can help you do for your business:
- Assortment Planning and Shelf Storage: CPG companies can plan and create market-based, customer-based, fashion-based, and price-based assortment mixes. Putting co-dependent products close together improves the shopping experience and also allows for cross selling.
- Online media sites and retailers can inform content and product placement in a catalog.
- Build recommendation engines (like Amazon customers who bought this item also bought these items)
- Targeted Marketing: Based on past buying patterns, email customers with product and service offerings that would likely interest them.