Market Basket Analysis

Problem:

A retail organization felt they were missing opportunities to cross-sell products to their existing customers and wanted to leverage their customers’ buying patterns and preferences to predict what they will likely purchase along with the existing items in their cart.  

‍

Solution:

By analyzing the data from point of sale systems in physical stores and carts in the online store this effort resulted in a tremendous amount of possible combinations which determined if someone bought X, they were likely also to buy Y.  And taking it one step further, if they bought X and Y they were likely to purchase Z 60% of the time.

As a result the retailer made changes to store layout, content placement, marketing messages and inventory control.

‍