Market Basket Analysis
In retailing most purchases are impulsive and hard to explain with conventional analysis techniques. Deloitte's Market Basket Analysis brings insights into how to deliver the right impulse at the right time.
The Deloitte Market Basket Analysis is a technique for analysing customers purchasing behaviour. Instead of relying on the costly process of acquiring new customers, Market Basket Analysis helps companies increase revenues from existing customers. By implementing a self-service tool on top of an existing historical purchases database companies can explore their customer's buying patterns in a visual and interactive way.
The Market Basket Analysis increases revenues by bringing more insights into:
- Cross-selling and up-selling;
- Sales promotions and direct marketing;
- Loyalty programmes;
- Product placement and store design;
- Supply chain;
- Product bundling.
The goal is to identify common buying patterns hidden in huge data sets. The discovery of these patterns is typically limited by the capabilities of traditional IT infrastructure. Deloitte's approach uses the Hadoop ecosystem and produces a set of rules in the form of "if X, then Y" that reveal previously hidden insights into the company's business.
50% of 50 top retailers surveyed by FactPoint were familiar with the market basket analysis and looking to expand their capabilities in that area.