Market Basket Analysis: Key to Improve Customer Behavior Anticipation

What is Market Basket Analysis?

Market basket analysis is an analytical technique that helps in predicting customers’ future purchase decisions. Market basket analysis is one of the most commonly used technique in retail to boost sales. It enables retailers to yield insights into the sales patterns of any product by analyzing online browsing behaviour of customers and historical sales records. The method of market basket analysis is used to improve marketing effectiveness and increase opportunities for up-sell and cross-sell significantly.

The primary objective of market basket analysis model is to identify the next product that the customer might find interesting and worth buying. Market basket analysis works on related products that occur together frequently in transactions. It aids retailers to identify the similarities and relationships between items that customers buy.

Market basket analysis can help you track key metrics such as average spend per basket and average profit per basket. Want to know how? Request a FREE proposal today.

REQUEST FREE PROPOSAL

What are the Benefits of Market Basket Analysis?

Arranging the display of SKU

Market basket analysis helps in identifying products that have a close affinity to each other in spite of falling into different categories. This information can help retailers to place the products with higher affinity close to each other to boost sales. For instance, if chips are placed closer to a beer bottle, there is a high probability that customers may end up buying both. On the contrary, if they were placed in two extremes, then it is highly likely that the customer would just visit the store, buy beer and leave causing loss to the sale of chips.

Want to know how market basket analysis can heighten marketing effectiveness? Read our latest success story here

Retail Market Giant Refocuses Attention on Customers’ Needs and Heightens Marketing Effectiveness with Quantzig’s Market Basket Analysis

Customizing promotions

Market basket analysis helps online retailers to analyze buying behaviour of every individual. Such analysis can help in estimating what items the customers may purchase at a specific time. For example, a customer who likes barbecues would most likely buy barbecue sauce and meat on weekends. So, this way retailers can customize special offers on weekends to increase the purchase frequency.

Our real-time analytics and market analysis solutions can help retail companies to improve sales effectiveness. Request a FREE demo below to know how.

REQUEST A FREE DEMO

Identifying sales influencers

All the items in the retail store have some affinity with each other, strong or weak. Market basket analysis can help retailers to study the buying trends of a certain SKU. For example, two SKUs can reveal a strong affinity for a period of time and sales can suddenly reduce because of several factors ranging from the introduction of the new brand, the price increase of one SKU to unavailability of a certain brand in the SKU. This way marketers can understand the influence of such activities in the sales figure.

Are you facing difficulties in devising new cross-selling strategies by analyzing huge datasets? Get in touch with our experts.

How Can Quantzig’s Market basket Analysis Solutions Help Your Business?

With the immense increase in competition, there is a dire need for innovation in marketing and sales strategies to retain, attract, and achieve better customer relationships. As a result, companies in the retail and CPG industry globally are facing issues in making use of customer datasets for developing the right strategy for customer segmentation and implementing the same for each segment to improve ROI. Quantzig’s market basket analysis solutions can help retail companies to optimize digital advertising investments, successfully improve marketing ROI, identify right media mix, devise the most profitable sales strategies, and optimize sales force to create maximum business value.

Additionally, Quantzig’s market basket analysis approach can assist in developing successful cross-channel and multi-channel retail strategies, by yielding insights into customer preferences and demands. By leveraging our customized analytics dashboard, companies can devise localized strategies to implement merchandising plans based on historic patterns, demographic segmentation and customer buying patterns.

Global-Meetings-and-Events-Market_CMST31

How to Make Your Business Stand Out with Web Analytics Services?

Digital marketing is gaining tremendous importance across all industries and within an environment where there is an immense value of ROI. Therefore, for companies, it is imperative to measure and quantify all web and social media activity to monitor the effectiveness of digital marketing campaigns and media investments. But businesses face several issues in evaluating their digital presence in the era when a strong online presence can be the key to business growth.

A recent report indicates that only 23% of companies have data-driven initiatives achieving remarkable results. 77% of marketers are still not able to report or measure how their business is performing online and how their customers react to their products or services. This is where companies need to realize the importance of web analytics services.

“Web analytics services equips businesses with the ability to decide what’s working and where there is scope for improvement.”

At Quantzig, we understand the impact that web analytics services can have on your business. And to help companies stay ahead of their competitors, our team of experts have created a comprehensive guide on web analytics services, that offer extremely helpful insights on leveraging web analytics services to improve business growth.

Web analytics services have the potential to help companies analyze and understand their brand sentiment, provide information on the competing brands and effectiveness of their promotional activities. But before we move on to the benefits of web analytics services, let’s understand the definition of web analytics.

Are you wondering how to analyze the effectiveness of company communications and customer interactions on different digital marketing platforms? Customized KPIs and metrics may hold the key to success. Get in touch to know more about the benefits of our web analytics services.

What is Web Analytics?

(more…)

Weekly Round-up: A Storyboard on the Benefits of Analytics in Marketing

LONDON: Quantzig, a leading pricing analytics services provider, has announced the release of their new storyboard on analytics in marketing and how it can help companies optimize marketing campaigns and make better business decisions that improve ROI. In today’s competitive market landscape, companies are facing a plethora of challenges such as increasing sales, retaining customers, and maximizing profitability. Without improving marketing outcomes, it has become very difficult for companies to sustain profitability. Therefore, companies need to integrate data across all marketing channels and consolidate it into a common marketing view that provides invaluable guidance in driving marketing efforts forward. This is where making use of analytics in marketing can help.

Marketing without analytics is like driving with your eyes closed.

By employing analytics in marketing, companies can measure the effectiveness of various marketing channels and understand the impact of the change in their marketing strategies. They can also gain accurate insights into the ROI of their marketing efforts. Quantzig’s analytics solutions have helped more than 55 Fortune 500 companies to make data-driven decisions and amplify revenues. Below, we have rounded up some of Quantzig’s recent success stories for this week and have also highlighted ways in which taking the help of analytics in marketing has helped businesses to stay ahead of the curve.

#1: Analytics in marketing optimized marketing spend: Are increasing complexities in operational support services worrying you? Don’t get worked-up, you are not alone! One of Quantzig’s clients faced the same business problem. To deal with the problem, they approached Quantzig to leverage its expertise in offering solutions for analytics in marketing to analyze the market data and effectively manage their marketing investments, optimize marketing spend, and improve ROI. Also, our marketing analytics proved very helpful in managing the service categories and address potential threats in the market.

Quantzig’s Marketing Analytics Solutions Helped a Telecom Industry Firm to Refine their Marketing Campaigns and Optimize Marketing Spend

#2: Leveraging marketing analytics solutions to re-prioritize product offerings: Are you struggling to access or integrate customer data and preferences? If so, you must go through our latest success story, where Quantzig’s marketing analytics solutions enhanced the client’s product offerings by penetrating new market segments. With the help of analytics in marketing, it is easy to devise robust business models and stay relevant in the entertainment industry space.

Marketing Analytics for a Smart TV Manufacturer Helps Re-Prioritize Product Offerings

#3: What do you need to keep in mind while dealing with marketing analytics?: Businesses can no longer rely on intuition for making marketing decisions and are, therefore, leveraging marketing analytics solutions. However, they need to follow a few steps while leveraging marketing analytics solutions like data collection and segregation, choosing the right analytics visualization techniques, utilizing marketing analytics tools featuring machine learning and AI, and personalizing campaigns.

Things to Keep in Mind While Dealing with Marketing Analytics

#4: Analytics in marketing paved way for unique customer experiences: Personalized customer experiences form a very important part of marketing. Don’t you agree? With the changing consumers’ behavior, organizations have felt the need to embrace technologies to meet the ever-growing array of demands over the past few years. But delivering maximum value at each customer touch point is the challenge that every business faces. Quantzig’s client was facing the same issue and tackled it by leveraging our marketing analytics solutions. The use of analytics in marketing proved beneficial in devising predictive models using a blend of variables.

Creating Unique Customer Experiences with Marketing Analytics for a CPG Industry Client

#5: Analytics in marketing personalized customer engagements: Are you wondering how to improve customer engagements? Using analytics in marketing can help! By leveraging our marketing analytics solutions, one a company was able to deliver maximum value at each customer touch point by mapping analytics to specific stages in the customer’s journey. Furthermore, this enhanced resilience, operational efficiency, and performance resulting in better ROI.

Ready to empower your business with analytics?

We are the analytics partner you have been looking for! Take a look at our solutions portfolio and see for yourself why we are the preferred analytics solutions provider for 55+ Fortune 500 companies.

REQUEST FREE PROPOSAL

Is Customer Analytics the New Kingpin for Banking Services Companies?

For modern banking services providers, understanding the customers is the foundation for a sustainable competitive advantage. The internal and external data sources available to banking services companies can be great sources for guiding product development, customer communication, innovation, and growth. This data can be further meticulously analyzed using advanced capabilities such as customer analytics through which banking services companies can get to know their customer at a more granular level. Furthermore, it can help in effective customer segmentation that reveals specific intelligence that could otherwise be obscured by the sheer volume of data. These insights aid banking services companies identify messaging strategies for marketing and customer service strategies and also gain a better understanding of the customer lifecycle and predict customer behavior.

Why is customer analytics important in banking services?

It is high time for banking services companies to up their game in customer analytics. Here’s why:

Analytics is the new normal

As a result of low-interest rates, moderate fee revenue, onerous regulation, and a less than robust economy, the banking services providers are expected to remain revenue challenged for the foreseeable future. So, it will be more important than ever for banking services providers and credit unions to focus on all possible strategies that would help them reduce costs and increase revenues. Some of these strategies that can be achieved by customer analytics include:

Better management (and measurement) of sales leads across channels
Inclusion of custom customer incentives/rewards to influence behavior
Improved targeting of customer segments
Moving from a product focus to a customer focus

Achieve customer centricity

Customer delivery and communication channels are expanding. This means that more customers interacting with their financial providers and banking services companies are using online and mobile channels, making it easier to gain insights into real-time sales and services. Analytics can respond to this rapid migration to digital channels by:

Integrating sales and service tools within a new digital environment
Improving branch efficiency and effectiveness
Helping to drive high value, high touch traffic back to branches

Technological changes

Customer analytics is no longer a domain that can be used and accessed solely by highly skilled specialists. Today, these solutions can be easily accessed and used by marketers and other business users to answer complex inquiries. Improvements include:

Increased number of specialized vendor solutions and expanded talent
Collapsing of product silos and ability to process increased data sources
Cloud-based solutions

Establishing analytics as a true business discipline can help banking services providers to grasp the enormous potential. Get in touch with us to know how we can help banking sector clients in establishing a customer analytics program to suit their organizational requirements.

How can customer analytics help banking services?

We at Quantzig have identified six levers that make customer analytics a core component for banking services companies to consider:

Customer Insights

Most financial marketers are highly interested in the ability to gain a better insight on current customers. Demographics and current product ownership form the foundation of customer insight. However, behavioral and attitudinal insights are gaining in importance as channel selection and product use have become more differentiated. Take the instance of sentiment analysis and social media analysis that are helping companies analyze in-depth about their customer emotions on social platforms. Furthermore, scoring models such as FICO is especially useful for banking services companies to analyze consumers’ credit history, loan or credit applications, and other data to assess whether the consumer are likely to meet their payment obligations on time in the future.

Business strategy

Customer analytics proves to be highly useful in banking services companies for product and channel development as well as economic forecasting, business improvements, risk analysis, and financial modeling.

Managing customer experience

Using customer analytics for customer experience management (CEM) helps banking services providers in delivering personalized, contextual interactions that will assist customers with their daily financial needs. Moreover, if done correctly, customer analytics enables the real-time delivery of product or service offerings at the right time, thereby ensuring a better customer experience.

Risk management

One of the more common uses of ‘big data’ today especially for banking services companies is in the area of risk and fraud management. The applications of data mining have expanded well beyond providing internal purchase and balanced insights. It now even includes transaction patterns and social media interactions that can provide a leading indicator of potential losses or fraud. The integration of structured and unstructured data in banking services can also be leveraged for traditional risk management including pricing decisions.

Marketing

Another traditional use of customer analytics in financial services is the ability to increase the effectiveness and efficiency of sales and marketing. The ability to derive insights on the likelihood of purchase based on the available information on individual customers has ushered in a seismic shift in marketing from product centricity to customer centricity. Banking services companies and credit unions are now able to make unique, timely, and relevant offers based on available customer insight rather than offering products and services based on what the financial institution would like to sell. This allows banking services providers and financial marketers to significantly improve the efficiency of marketing spending and the close rate of sales leads.

To learn more about how Data analytics solutions work in banking sector companies, request a proposal.

Implementing customer analytics for banking services

The future is already here. The only drawback is that it is not evenly distributed. Banks services and companies in every other industry are already deploying advanced analytics to move their businesses forward. Quantzig has identified that almost every top bank lists advanced analytics among its top five priorities. Most plan to invest further in these techniques. A few banking services companies are already seeing the rewards. By establishing data lakes and centers of excellence and using machine-learning techniques these leaders have already built substantial foundations for their business.

How do you know what analytics capabilities to invest in for your business? All you need is an analytics expert that can guide you on leveraging the available data by avoiding pitfalls in banking services and accessing the broad set of opportunities. At Quantzig, we understand these needs of our clients and are committed to helping them bolster their analytics capabilities. Request a demo to know more about our analytics solutions.

Things to Keep in Mind While Dealing with Marketing Analytics

What is marketing analytics?

Marketing analytics involves various processes and technologies that are used to evaluate the success and value of the marketing efforts as well as the act of identifying opportunities for improvement. Marketing analytics tools contain various metrics to measure the performance of marketing initiatives. In short, it helps evaluate which initiatives are actually bearing fruit and which are not. It gathers data from across all marketing channels and consolidates it into a common marketing view. From this analytical results can be extracted, which provide invaluable assistance in driving the marketing efforts forward.

Why is marketing analytics important?

Diverse technologies are often implemented across several platforms for companies to advertise, market, and create brand awareness. The data generated from them was siloed. It is illogical for marketers to rely on intuition alone to get their initiatives and campaigns right, especially given the role of marketing in retaining customers and driving revenue. The top management would want to see the value of the marketing initiatives, and analytics is the best way to show them. Also, it is important to have a way to measure and monitor your campaigns and then demonstrate their value clearly to executives and stakeholders. Furthermore, marketing analytics tools help establish your value and how your work relates to revenue.

Things to know when applying marketing analytics

Devise a smart marketing strategy

One of the primary steps for any organization to undertake before delving into marketing analytics tools is to devise an effective marketing strategy. There are many tools available in the digital marketplace that allows companies to construct tailor-made campaigns which revolve around their product and help brands speak highly about themselves. These tools are primarily based on the search engine audience sentiment about popular keywords, popular hashtags, and trends among many others. Marketing analytics tools will allow marketers to evaluate various aspects that encapsulate the digital marketing spectrum like incoming leads, conversions, and website traffic. If marketers incorporate this workflow, key insights can be easily derived at the end of the campaign. These valuable insights can be applied to the next campaign or can be used adaptively if the campaign is long-term or recurring.

Data collection and segregation

Large amount of data gets generated during the campaigning. This data can later be converted into meaningful insights. Marketers must ensure that they have covered and collated data elements getting generated from all the sources which were involved in a marketing campaign. Data from social media, emails, POS machines, call centers, beacons, and Wi-Fi needs to be collated and safeguarded. These data would often prove to be unstructured. This data can later be structured to get a clear understanding of how customers are shopping today.

Choosing the right analytics visualization

The data generated must prove useful for the marketing teams and stakeholders if you are to gain meaningful insights from it. The key to getting this right is to choose the most appropriate data visualizations, which can help identify patterns and interpret the data. Thus, it is important to choose marketing analytics tools that allow you to choose or customize your visualizations instead of using default charts for displaying data.

Marketing analytics tools featuring machine learning and AI

In order to be effective, marketing must be real-time and predictive today. You must be able to analyze the data, make accurate predictions, and take data-driven decisions to enhance each step of the customer journey. Using marketing analytics tools with machine learning and AI capabilities make these tasks easier to do and with minimal errors.

Personalizing campaigns

Global enterprises pay extensive attention to providing superior client experiences. Due to the advent of several modern enterprises that have absorbed phenomenal technical capability and a fresh approach to client servicing in entirety, client experience has become a highly important factor today. Marketing analytics tools can help companies know about product expectations from a segregated customer list. This enables an organization to just sell an already desired product via targeted marketing rather than hard-selling a product offering.

Tag: analytics in marketing