Market Basket Analysis is an advanced modeling technique available in KnowledgeSTUDIO used to find associations between items or events by determining the likelihood of them to occur together.
Typically applied to large amounts of customer transaction data, marketing and sales organizations use Market Basket Analysis to analyze, understand and predict customer purchase behavior in order to maximize customer lifetime value (CLV) and reduce churn rates. Resulting association rules identify products and services that customers typically purchase together, empowering organizations to offer and promote the right products to the right customers.
Market Basket Analysis in KnowledgeSTUDIO provides a rule system complementary to Angoss Decision Trees and Strategy Trees — with advanced data visualization, usability and rapid deployment of rules.
Market Basket Analysis is used across varied industries for business analytics in these areas:
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Business Analytics |
Description |
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Product Recommendations |
Identify targeted, prioritized lists of product recommendations to encourage sales of high margin or high performing products. |
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Product Promotions |
Target the most likely buyers of profitable products and services with coupons and discounts. |
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Cross-sell and Upsell |
Promote additional products and services to existing customers over their lifetime in order maximize revenues and profitability. |
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Product Placement |
Optimize store layout, shelves, flyers, and ecommerce website design to encourage purchases and drive revenue. |
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Next Best Offer |
Identify the products or services your customers are most likely to be interested in for their next purchase. |
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Loyalty and Retention |
Maximize customer lifetime value (CLV) with targeted affinity marketing campaigns linking complementary items. |
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Anomaly Detection |
Identify unexpected purchase patterns in order to recognize and predict fraudulent behaviors. |
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Logistics and Operations |
Streamline inventory selection and optimize supply chain processes by predicting purchase patterns. |