Market Basket Analyzer Overview
Organizations know the importance of analyzing transactional data to better understand customer behavior, but lack the tools to link these analyses to business value. APT’s Market Basket Analyzer software rapidly analyzes transactional and customer data to answer key business questions. Executives need to know which products customers purchase together, and how the purchase of a certain item influences the economics of the rest of the transaction. Additionally, companies must understand loyalty to various products before cutting loss-leading products, or introducing new products that might cannibalize other important ones. Market Basket Analyzer helps many of the world’s leading companies drive significant incremental value from the transactional data that they already store, in a fast and actionable way.
Market Basket Analyzer helps answer key questions about customers’ purchase behavior for any retail organization, including:
- What products drive traffic? Transaction size? Customer loyalty?
- What products are often (or rarely) sold together? Where are there bundling opportunities?
- Which products should we promote?
- What items should we remove from our assortment?
- How do sales vary by product, by time of day, by day of week, by tender type, by customer type, etc.?
- How do different customers react to a promotion? How can we target promotions by customer segment?
- Which type of promotion (e.g. BOGO vs. 50% off) drives higher rest-of-basket sales?
- Speed: Market Basket Analyzer employs proprietary APT algorithms to examine entire years’ worth of transactional data in 2-3 minutes.
- Flexibility: Results can be filtered by any transaction characteristic that is tracked; for instance, time of day, day of week, customer segment, transaction size, etc.
- Visuals: The software automatically creates clear, intuitive visuals for every analysis; no need to recreate visuals in another software.
- Linkage: Market Basket Analyzer results can easily be exported to common file formats (e.g., Excel) and can be linked to other APT software products such as Test & Learn to create even more powerful and richer analyses.
- Initial data loading is complete one week from data delivery; data is then automatically loaded on a weekly basis.
- After initial data load, Market Basket Analyzer is easily implemented through a software that can be accessed with a login anywhere.
- APT provides high-touch support to all software users – besides initial training, your team will be allocated a dedicated representative to help with any software or analytical questions.
“We like to think of MBA as an “insight engine.” We can quickly analyze several kinds of programs, such as promotions, merchandising resets, and pricing, to generate actionable insights. We use MBA to define our merchandise and promotional strategy. We’ll look at promotional economics to determine whether a new promotion is changing our customer behavior. We’ll examine subsequent baskets to dive into the return rate for customers, given that they purchased a specific product. We’re institutionalizing MBA at Lane Bryant through a group made up of people from different functional areas that all use MBA to drive their decisions.”
– Testing Manager, Lane Bryant
- Transaction-level data
- Financial performance data (e.g. sales by product by day or week)