Market basket analysis identifies customers purchasing habits. It provides insight into the combination of products within a customers 'basket'.
The term 'basket' normally applies to a single order. However, the analysis can be applied to other variations.
Ultimately, the purchasing insights provide the potential to create cross sell propositions:
- Which product combinations are bought
- When they are purchased; and in
- What sequence
Developing this understanding enables businesses to promote their most profitable products. It can also encourage customers to buy items that might have otherwise been overlooked or missed.
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