Headquartered in the United States, the client is a leading global retailer.
The Business Challenge
Change is continuous as tastes, fashions, and, customer preferences sway with every passing year. Thus, with the aid of a market basket analysis engagement, the retail market client wanted to understand and cater to their customers’ changing purchasing behaviors and preferences. They realized that analyzing the current retail market trends and their customers’ behavior will help them identify which items or a customer is more (or less) likely to buy. With the help of Quantzig’s market basket analysis strategy, the client wanted to analyze their customers’ behavior and make crucial decisions regarding promotions, displays, product placements, store segmentation, customer segmentation and target messaging. Additionally, they wanted to create promotions that leverage correlations and track current retail market trends and customers’ purchasing behaviors to better predict their purchasing patterns.
With the ever-increasing cost of acquiring new customers and competition, are you wondering how to figure out which products to offer for cross-selling? The solution to your problem is market basket analysis. Contact us today!
With the help of Quantzig’s market basket analysis solutions, the client was able to understand the current retail market trends and customers’ behavior. By understanding what exactly their customers’ need, retailers were easily able to engage in specific targeting. Moreover, Quantzig’s market basket analysis solutions helped the client to optimize campaigns and promotions. Additionally, by correlating market basket analysis with foot traffic counts, the retail market client successfully identified what initially bought the customers to the store. The market basket analysis solution subsequently helped them to determine marketing strategies to make their customers come back to the store next time. The solution offered also yielded better ROI as only the right customers were targeted. This increased sales and heightened market effectiveness.
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Why Incorporate Quantzig’s Market Basket Analysis Solutions?
Market basket analysis analyzes point of sale data to identify products that are frequently purchased together or in a sequence. A market basket analysis creates “baskets” of the item combinations and calculates the strength of the item correlations to equip organizations with the tools to predict customer purchasing habits, analyze the effectiveness of strategic initiatives, and ultimately increase their revenue. Market basket analysis is one of the key techniques used by large retailers to uncover associations between items.
To put it another way, market basket applications allow retailers to identify relationships between the items that people buy. With the help of this market basket application tool, not only can retailers identify target markets and current retail market trends, they can also enhance their customer-base by creating, delivering, and communicating a superior customer experience. Market basket application allows retailers to easily and promptly look at the retail market size, current retail market trends, quantity, and value of the customers’ market basket to understand the pattern in which products are purchased.
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Retail Market Basket Analysis
Companies in the retail market are transforming at a rapid pace by incorporating various retail market trends and innovations. Although personalization and customization in products and services and current retail market trends have become mainstream, companies in the retail market have started analyzing the changing retail market trends and market dynamics to gain an upper-hand in the market. The changing market landscape has forced companies in the retail sector to employ market basket analysis to analyze the latest retail market trends and compete in the market.
Personalization is among the popular retail market trends that we have on our list this season. Furthermore, the rise in technology and evolving retail market trends have taken shopping away from just the in-store experiences to digital screens. Brands have realized that consumers expect more than just shopping from retail stores today. Hence, customer experience is winning an important position in the retail marketing strategy of several prominent brands across the globe.
Additionally, with trends such as customer centricity taking the center stage, retailers are leaving no stone unturned to discover new ways of getting to know current retail market trends and their customers’ better. Recent research states that by identifying the product combinations that frequently co-occur in transactions, companies in the retail industry can uncover associations between customers and their purchase patterns. Thus, retailers can leverage market basket application and the data obtained from market basket analysis to develop new pricing models and improve revenue.