Affinity Insight 2.0 is a sales analysis tool that enables retailers to analyze customer buying behavior at the market basket level, offering insights that can drive effective promotions and optimize store assortments. It addresses challenges associated with aggregated data by providing real-time computations and flexible analysis capabilities using SAP's in-memory technology. The tool aims to enhance business decisions and improve profitability by revealing how products relate to one another in customer purchases.

1. Affinity Insight 2.0 for Retail
SAP Performance and Insight Optimization
February 2012

2. Customer‘s Voice
“
“ Affinity Insight … allowed interrogation of our data
across a number of stores and categories providing
affinity insight, some interesting, some obvious, some
counter intuitive and some potentially highly lucrative
and attractive. Projected savings and benefits showed
relatively short payback in a matter of months rather
than years …
Colin McLean - Chief Operating Officer, Scotmid Group
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3. What if…
…you had full insight to
buying behavior on market
basket level?
Effective Rationalized Optimized store
promotions assortment layout
Analyzing customer behavior on market basket level can improve
business decisions in various areas
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4. The Challenge
How to analyze sales on the level that
matters most – the customer level?
Only aggregated data available
Lack of statistical functionality
Performance problems due to huge data sets
Most reporting environments irreversibly destroy valuable information by
aggregating sales transactions to daily or weekly level
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5. Solution Scope
Affinity Analysis 2.0 is a tool for sales
analysis on market basket level
Ad-hoc calculation of many different
market basket KPIs
Maximum flexibility for analysis in product
and store hierarchies
Intuitive user interface
High performance computations powered
by SAP In-memory technology
Affinity Insight 2.0 allows flexible computations on market basket level
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6. Analysis Example 1
Electronics retailer
Interested in effects of a digital cameras
promotion on sales of other products
Affinity Insight might show:
Every third customer who purchases a digital camera
also buys a spare battery
This was true in the past, independent of whether digital
cameras were on promotion or not
Conclusion
A promotion on digital cameras will also increase battery
sales by an amount that can be well estimated
Discover the true financial impact of drag-along effects
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7. Analysis Example 2
Drug store chain
Wants to define a new minimum assortment for all their stores
Approach: Mainly driven by lists of “top seller” items
Affinity Insight might show:
Certain premium products don’t have a strong direct
contribution to over-all sales and profit, but they are
often bought together with other high-value items in
very profitable market baskets
Conclusion
Reducing the assortment without taking into account the
market basket view may put business with the most
profitable customers at risk
Understand better how certain products indirectly contribute to your sales
across the whole assortment
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8. Analysis Example 3
Do-it-yourself store chain
Considering a major change in store layouts
Affinity Insight might show:
Certain departments are represented together in the
same market baskets more often than others
The products in some departments tend to be
purchased alone or in small baskets
Conclusion
This information may be used to allow customers shorter,
more convenient ways through the store, or guide them on
ways that improve drag-along sales
Get indications on how shoppers move through your store
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9. Affinity Insight 2.0 – Solution Architecture
SAP Business Objects Dashboards
User-friendly front ends
PIO Statistics Functionality
Java web service and SQL algorithms
SAP HANA
SAP HANA
In-memory data base filled with POS data
SAP HANA brings a new level of speed and detail to your analyses
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10. Advanced Analytics Portfolio
Key Value Zone Markdown Trial
Affinity Insight
Drivers Optimization Optimization Management
Assortment
Size Price Marketing
Insight & …
Optimization Optimization Optimization
Rationalization
Performance Forecasting & Monitoring
Demand Model
(location, seasonality, price, promotions…)
Transaction Log Data Inventory Data Master Data
Affinity Insight 2.0 is part of a broad portfolio of standardized and tailored
advanced analytics solutions
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11. Your Benefits
Business-relevant information that is not
accessible with most reporting tools
Computation of various metrics on
market basket level
Maximum flexibility to drill down in
product and store hierarchies
Real-time computations on huge data
sets with SAP In-memory technology
Extension to other analytics services on
the same technical platform
Discover new facts about your customers with Affinity Insight 2.0 !
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12. Thank You!
Contact information:
Dr. Helmut Linde
Head of Science and Technology EMEA
SAP Performance and Insight Optimization
Helmut.Linde@sap.com
+49 160 908 222 41