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Market Basket Analysis:
     Suggestive Selling Tools for an Online Business




A leading online brand merchandising comp...
A leading online brand merchandiser:
                                                                     inTouch has deli...
Analysis Techniques
inTouch made use of a data mining technique that involved the computation of two parameters
called Sup...
Every day analytics

                                       Assured Results and RoI

                                     ...
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Market Basket Analysis: Suggestive sales strategies for an Online Retailer

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A B2B2C Ecommerce business that sold a variety of brand merchandise products to employees of large IT and BPO companies wanted to understand what products customers bought together online. The insights would be used product placements on web pages and to decide on what products are to be bundled for offers.

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Market Basket Analysis: Suggestive sales strategies for an Online Retailer

  1. 1. Market Basket Analysis: Suggestive Selling Tools for an Online Business A leading online brand merchandising company in India
  2. 2. A leading online brand merchandiser: inTouch has delivered year-on-year benefits to Market Basket Analysis several clients in a wide variety of businesses – Consumer, Retail, Ecommerce, Food & Beverages, Jewelry, Beauty & Healthcare, Education, Satellite and Web Communication, Petroleum, HR Services and more – over several long term and on-demand engagements for the past 5 years. Founder CEO: The analytic solution is a breath of fresh air to us. Salary Computational Tool for the largest We want inTouch to soon turn this into an online, realtime sales temp staffing business in India >> predicts machine! market benchmarked salaries based on skills and attrition scores Manager – Online sales: Counter-intuitive insights that inTouch generates get more and more interesting as you drill down! S t o r i e s Pricing and Discount Optimization for the world’s largest Satellite Communication business >> has delivered more than $100 million in potential annual savings for the A B2B2C ecommerce business that sold a variety of brand business merchandise products to employees of large IT and BPO companies wanted to understand what products customers S u c c e s s Sales Program Effectiveness for America’s bought together online. The insights would be used to place largest Air conditioning systems provider >> products that sold together on the same page and to decide on has afforded visibility into rates of return what products are to be bundled for offers. delivered by various marketing programs across sales territories in North America The number of product units retailed online was well in excess of 2,500 and there were about 20 categories in all. Data for online Supply-Demand Matching & Optimization Tool purchases made for 180 days was provided for analysis. for a large Staffing Service provider in India >> has brought down doability turnaround from 3 weeks to across the table for the salesforce The business challenge Topline growth oriented rewards programs for a market leading Filter Coffee business in India inTouch was required to arrive at purchase likelihood estimates >> has delivered a 3-fold increase in revenues across all products at unit and category levels. The business for 3 straight years for the 425 outlet chain needed a visualization of the model along with prioritization of product pairs and triplets in a way that it could also address inventory issues. Customer Feedback Decision Support and Smart Response System for India’s largest fine dining restaurant chain and many more market leading café and QSR chains >> drives a significant percentage of repeat visits across the 20 outlet restaurant chain
  3. 3. Analysis Techniques inTouch made use of a data mining technique that involved the computation of two parameters called Support and Confidence. The technique would first generate all permutations and combinations of product units that had Photo Pen Holder Photo Frame sold together. It then 0.27 0.73 I Don't Sleep computed values for Round Neck T-Shirt - (Men) I Didn't Get Smarter 0.324 0.622 Round neck T-Shirt - (M) the above two Arrow Shirt White 0.35 parameters and Black Polo Neck 0.567 Van Heusen - Blue T-Shirt - (Men) organized the product 0. 35 0.54 Black I Didn't Get Smarter combinations in Round neck T-Shirt - (M) Leather wallet with white stitch descending order of 0.35 0.486 Leather Pen Stand 0.432 their likelihood to sell together. Magic Calculator with Pen White Polo Neck T-Shirt - (Men) Results The analysis results illustrated cause and effect relationships along with Support metric values for each of the pairs and triplets of products and product categories The Business Solution The client was provided with a drill up / down and rotational mechanism to identify and measure the associative relationship that exists between the multitudes of product units. This would help the business design the web pages and place products in way that maximized opportunities for cross- and up-sell. Bottomline Across hundreds of service offerings, and potentially numerous permutations and combinations, the business was able to choose those that are likely to result in high customer response ratio. The business would now be able to predict, at a customer segment level, what combination of products/offerings are likely to be bought more readily by customers.
  4. 4. Every day analytics Assured Results and RoI Incremental and scalable Built and managed for your business inTouch analytics, Floor 2, #33/5, NHS Road, V. V. Puram, Bangalore, India. Pin: 560004 Mail response@be-in-touch.com Call +91-80-32929411 Visit www.be-in-touch.com Visit www.indiasalary.in India’s only authentic salary computational tool. Powered by inTouch analytics in partnership with TeamLease Services

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