Shopping Basket Analysis
Customers tend to buy a number of items together or separately. Analyzing customer sales information can reveal valuable marketing information. Basket analysis is to determine what products customers are buying at the same time or at different times. It provides opportunities for cross-selling through relevant product recommendations. Product link analysis is to;
... find other products purchased most often along with a particular product?
Product Purchasing Pattern Analysis
Customers tend to variety of products from the same businesses. Analyzing such information can reveal valuable business opportunities in various way. For example, the following is a summary table containing customer purchasing information. (Notice that this is not the same technique as "shopping basket analysis", also known as "association rules".)
CMSR product association analysis tools can be used to extract buying patterns;
Cells in red color indicate that there is positive relationship between two products. That is, when customers buy one product, they tend to buy the other product as well. Cells in blue color indicate the opposite. When customers buy one product, they tend to not buy the other product. Brightness of cells indicates the relative strength of relationships. The chart shows that the following product pairs have strong positive relationship;
Also notice that most product pairs shows negative relationship (in blue). Knowing negative relationship can prevent from wasteful marketing efforts! The strongest pairs as follows;
* Basket analysis is a feature of CMSR Data Miner. Download is available from Data Mining Software.