Leading Practices In Market Basket Analysis

Market basket analysis, also Known as affinity analysis, has emerged as the next step in the evolution of retail merchandising and promotion. Market basket analysis allows leading retailers to quickly and easily look at the size, contents, and value of their customer's market basket to understand the patterns in how products are purchased together, or basic product affinities. Advanced implementation of market basket analysis leverage near – instant results to encourage "train – of thought" or interactive analysis, enabling retailers to drill down into customers buying patterns over time to precisely target and understand specific combinations of products, departments, brands, categories, and even time of day.

To understand how top retailers leverage market baskets analysis in their business decisions, The Fact Point Group interviewed over 50 retailers with revenues from $4000 million to $24 billion What we found was that an overwhelming majority of retailers were familiar with market basket analysis and looking to expand their capabilities in that area. This research study reports on the best practice in market basket analysis.

With market basket analysis, leading retailers can drive more profitable advertising and promotions, attract more customers, increase the value of the market basket, and much more. Buyers, planners, merchandisers, and storage managers, are beginning to understand how this news generation of easy - to – use market basket analysis tools helps them work smarter and compete more successfully.