IDP delivers data-driven marketing solutions like market basket analysis, which identifies items purchased in combinations. Market basket also reveals how customers respond to promotions, notably price changes on related items. It’s not just about what products sell, but what they’re selling with, and how profitable they are when sold in combinations.
Market Basket Analysis — Benefits
Market basket analysis extracts customer behaviors and transforms them into actionable insights. This empowers marketers to quickly deploy tactics around assortment, media views and rewards. Marketers capitalize on these data-driven insights to design new strategies that anticipate and engage loyal customers. By examining market basket affinities along with product promotions, marketers move beyond just analyzing sales; they learn how and why customers buy particular product mixes. Market Basket Analysis also drives item positioning. If one item sells well with a complementary one, then Marketers consider merchandising them together.
Creating tailored discounts according to customers’ needs and preferences is a great way to increase sales. By tailoring discounts to individual customers on products in which they have interest, companies build trust with the customer and increase the bottom line. — MarketingProfs, Nov 2015
Market Basket Analysis — Challenges
Consumers are unforgiving of poorly targeted, one-size fits-all marketing; they expect marketers to know what they want next. And the tempo by which marketers must respond to customers is dizzying. Marketers today must quickly engage and reward on-line customers with compelling offers before check-out.
Consumers have long stopped responding to in-your-face marketing. …today’s consumers have no trust, no time, and no patience for traditional marketing tactics. — Forbes, Oct 2015
Market basket analysis is not rocket science. But, the data management and data mining required are complex and are beyond the abilities of all reporting tools and most business analysts. Market basket analysis requires transaction detail over a time period large enough (25 months) to consider trends, and includes complex joins with customer and product data. With increased data volumes, data complexities and data velocities, marketers are sprinting to anticipate customer needs.
Many CMOs are also frustrated by the latency of in-house analytics and by the efforts required to access and manage data. Plus, in-house reporting tools don’t meet today’s deep-dive requirements.
Market Basket Analysis — IDP
Marketers have a multitude of platforms, tools, and technologies available to them. It’s difficult to master these technologies, let alone use them effectively enough to quickly react to changing consumer and competitor behaviors. — Forbes, Nov 2015
Our goal is to help you solve your complex market basket analytics while understanding that your data is challenging and that you have limited resources. We remove the requirement that business analysts manage large data volumes or complex data structures — bridging the gap between data management and analytics — so analysts focus, not on data, but on making recommendations from the analytics.
At IDP, we manage large data volumes with complex structures; we integrate disparate data sources and build rock-solid analytical data sets. And we always collaborate with marketing executives to generate the right methodologies that produce marketable results.