Market Basket Analysis

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Market basket analysis is the study of items that are purchased (or otherwise grouped) together in a single transaction or multiple, sequential transactions. Understanding the relationships and the strength of those relationships is valuable information that can be used to make recommendations, cross-sell, up-sell, offer coupons, etc. The analysis reveals patterns such as that of the well-known study which found an association between purchases of diapers and beer.

Transactional databases can be quite large and cumbersome. Extracting valuable information requires the right toolset. STATISTICA provides advanced analytic tools to explore market baskets and find actionable information therein. The rules uncovered with Sequence Association and Link Analysis can be deployed to new databases to show the probability of purchasing item x, given item y is in the shopping cart.

STATISTICA screenshot association rules network

In this plot, items that occur together in transactions are shown. The strength of the relationships is conveyed in the thickness of the line. The frequency of the item is conveyed in the size of the circle that represents a product.

STATISTICA Solution

  • Full Range of Solutions: Preparing data for analysis, feature selection, model selection, model evaluation and deployment. STATISTICA incorporates all these into one software package.
  • The most powerful algorithms available: STATISTICA incorporates not only traditional data mining algorithms such as CART,CHAID etc. but also other powerful algorithms like Boosted Trees, Random Forests, Neural Networks for sophisticated propensity models.
  • Sequence and Association analysis: Find and quantify associations between purchases and behaviors with STATISTICA’s Sequence Association and Link Analysis tool. What items are frequently purchased together, subsequently, etc. Uncover these valuable patterns to improve marketing strategies.
  • Enterprise-Wide Convenience: Build models in one department, test models in another department, and then start scoring in offices worldwide. STATISTICA Enterprise™ is a truly collaborative tool that leverages the full power of the best  market basket analysis tools available.
  • Reflexive models for realtime needs: Use Live Score® to process new customers as they come in, and update your market basket models in turn-around times made possible only by STATISTICA’s integrated solutions.
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About statsoftsa

StatSoft, Inc. was founded in 1984 and is now one of the largest global providers of analytic software worldwide. StatSoft is also the largest manufacturer of enterprise-wide quality control and improvement software systems in the world, and the only company capable of supporting its QC products worldwide, with wholly owned subsidiaries in all major markets (StatSoft has 23 full-service offices, on all continents), and its software is available in more than 10 languages.

Posted on October 24, 2013, in Uncategorized. Bookmark the permalink. Leave a comment.

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