Salesmatrix v4 

Market Basket Analysis

The hottest and most talked about business intelligence routine and perhaps the most exciting feature for version 4. 

Market Basket Analysis is a sophisticated algorithm used to determine which goods and services are most frequently purchased together in a transaction. It helps companies understand consumer-buying patterns, and leverage those patterns to bring in more profits.

For example:

If purchasers of Barbie dolls are more likely to buy confectionary, then high-margin sweets can be placed close to the Barbie doll display. Customers who would have bought sweets with their Barbie dolls had they thought of it will now be suitably tempted.

In the health food industry it could mean lowering the price of one type of vitamin tablets, thereby attracting customers to a high profit-margin, associated market basket purchase - perhaps a product focused on solving particular lifestyle issues.

Companies that extend Market Basket Analysis to their day-to-day business operations consistently outperform those who do not.

Using Salesmatrix and the subset capability, we have the possibility to compare results between different stores, between customers in different demographic groups, different seasons of the year, etc.
If we observe that a rule holds in one location, but not in any other (or does not hold in one store, but holds in all others), then we know that there is something interesting about that location. Perhaps its clientele are different, or perhaps it has organized its displays in a novel and more lucrative way. Investigating such differences may yield useful insights that will improve company sales.

Here a sample set of data from a health-food section of a retail shop shows a sample of products thtat are purchased together. The products Micr Glucos Blister, Soundasleep 30c and Stress Relief 30c have been bought together 143 times. The times each individual item is bought together is listed as 798, 591 and 528 time respectively. This confidence value shows that the chance of a customer buying all three together if they choose one of these products is 22.73% - almost 1 time in 4. Expanding the tree shows that Glucose Blister and Soundasleep have been purchased together 317 times. Looking at the confidence percentage, nearly half of the occasions that one has been purchased the other has also - clearly a strong relationship. Perhaps people who need help to sleep also want to start with a boost of energy the next day? 

See other features of Salesmatrix v4:

• Easier data mining and manipulation capabilities
• Even smarter business intelligence
• *New Budget Projections
• Better communication of results