Market Basket Analysis

Ever wondered why there are jam and butter in the bread aisle, why BBQ sources are in the meat section, or why diapers are placed next to the beer fridge? Experienced store managers would have noticed customers’ behaviour of purchasing pairs of products. Often, these pairs are complementary products. In practice, however, the pairs of products are not easily recognized. Therefore, market basket analysis is performed. The analysis filters out products that are not worth pairing when their effects are small and/or insignificant. The analysis can be successfully applied to all sectors in which multiple products are traded such as banking and telecommunication. The main two benefits of performing a market basket analysis are retaining customers and increasing sales.

Market Basket Analysis

Retain your existing customers and boost sales through identifying and selling products that are commonly purchased together.