Market Basket
Candlefocus EditorRetail stores also use market basket analyses to predict and increase impulse purchases. Based on groups of items that a customer typically purchases, a store can suggest new items located in close proximity to boost the customers value not anticipated prior to their arrival. For instance, if a customer purchases bananas, they may be encouraged to also purchase strawberries or yogurt in the same area of the store.
Many stores employ predictive analytics to gauge the performance of marketing campaigns and product deployments. For example, a store may analyze the purchase patterns of a certain market segment in order to identify the optimal layout of items in the store to further boost their sales. The store can identify which specific groups of items work together and adjust the products accordingly. By leveraging predictive analysis, the store is able to improve operational efficiency and understand their customers’ needs and preferences better.
Overall, an analysis of the market basket is a powerful tool in the retail business. By using the CPI for an estimation of inflation, retailers can adjust and optimize pricing for their products. Additionally, by employing predictive analytics, stores can create a more customer-centric environment by providing them with items specifically catered to their needs. With a comprehensive understanding of their own market baskets, retailers can best anticipate customer behaviors and offer desirable options in an effort to boost sales.