Originally published by Quantzig: Specialty Foods Retailer Achieves 3.5x Increase in ROAS with The Help of Market Basket Analysis
Key Highlights:
In today's competitive retail landscape, understanding customer preferences and purchase patterns is vital for success. Discover how a leading European specialty foods retailer achieved a 3.5x increase in ROAS (Return on Ad Spend) with the help of market basket analysis.
Market Basket Analysis Engagement Summary:
Quantzig collaborated with the specialty foods retailer to develop a market basket analysis solution using their existing BI platform. By leveraging market analysis, the retailer optimized marketing campaigns and store layouts to boost sales and profitability across retail outlets.
How Can Retailers Benefit from Market Basket Analysis?
In the fragmented retail sector, customer acquisition is crucial for business success. Retailers face challenges ranging from data management to technology adoption, underscoring the need for tailored solutions to enhance marketing effectiveness. Market basket analysis offers insights into customer preferences and purchase patterns, enabling targeted campaigns and revenue generation.
Quantzig’s Approach:
Our experts adopted a three-step approach:
- Data Discovery and Integration: Analyzing data sets from various sources to identify correlations.
- Data Filtering: Cleansing and filtering customer data sets using advanced algorithms.
- Creation of an Association Model: Developing an association model and market basket analysis dashboard for real-time insights and product bundling recommendations.
Business Outcome:
By leveraging market basket analysis, the specialty foods retailer achieved:
- Discovery and analysis of POS data
- Enrichment of disparate data sets into a unified view
- Deep insights into product affinities
- Deployment of a market basket analysis dashboard for quick product affinity identification
- 3.5x increase in ROAS
In conclusion, market basket analysis empowered the retailer to make informed decisions, optimize marketing efforts, and drive profitability in a competitive retail landscape.
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