Originally Published on: QuantzigSpecialty Foods Retailer Achieves 3.5x Increase in ROAS with The Help of Market Basket Analysis

Market Basket Analysis Engagement Summary

We collaborated with a prominent European specialty foods retailer to implement a market basket analysis solution using their existing BI platform. Through market analysis, the retailer significantly enhanced the efficiency of their marketing campaigns and optimized store layouts, leading to increased sales and profitability across all retail outlets.

#MarketBasketAnalysis

How Retailers Benefit from Market Basket Analysis?

In today’s competitive retail landscape, customer acquisition is pivotal for a company's success. The retail sector faces challenges ranging from data management to technology adoption, making it crucial for businesses to find solutions tailored to customer needs for improved marketing effectiveness.

To thrive in this scenario, retailers must understand customer preferences and purchasing patterns. Advanced analytics tools, like market analysis, provide insights into large datasets, including purchase history, product categories, and frequency of purchase. Retailers can leverage market analysis to unveil relationships between different product categories and create targeted campaigns for revenue generation.

#RetailAnalytics #CustomerInsights #MarketingEffectiveness

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Client Challenge:

A specialty foods retailer based in Denmark had invested heavily in CRM tools and customer data management but struggled to analyze and extract crucial information from vast customer and product databases. They lacked the analytics capabilities to decipher data sets and draw conclusive insights from transactional datasets within their POS systems.

Quantzig’s Approach:

Our market analysis experts developed a customized solution, leveraging the client’s existing tools and data management techniques. The three-step approach included:

Step 1: Data Discovery and Integration Identification of associations between purchases by analyzing data sets from various sources.

Step 2: Data Filtering Cleansing and filtering customer data sets using advanced algorithms and data filtering techniques.

Step 3: Creation of an Association Model Using Market Basket Analysis Development of an association model and market basket analysis dashboard for real-time data discovery and product bundling recommendations.

#DataAnalytics #RetailSolutions #CustomerData

Business Outcome:

Market basket analysis empowered the client to make faster, informed decisions by:

• Discovering and analyzing large volumes of POS data.
• Enriching data sets into a unified view.
• Deep diving into product affinities within a market basket.
• Deploying a market basket analysis dashboard to identify product affinities quickly.

This strategic approach led to a remarkable 3.5x increase in ROAS.

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