We just released one of our most important retention tools to date: Market Basket Analysis
What is Market Basket Analysis?
It’s one of the most important techniques used by large retailers and ecommerce brands alike that unveils associations between products. Particularly, what customers are buying together.
So many of our customers have come to us asking for a solution that will unlock their most commonly sold product combos.
Think of the power in knowing exactly what product combinations are speaking to your customers! You can market better, create better product bundles and combos, and even help your logistics and operations teams out. And turns out, it’s one of the most essential retention tools a company can have (more on all this below).
The problem is that Market Basket Analysis is a complicated and cumbersome process that retailers have to traditionally do in a myriad of spreadsheets, pivot tables etc. We’re talking hours and hours of work.
But, feedback from our customers in the fast moving, ever-evolving ecommerce world shows that doing this analysis by hand is less than ideal (we’re putting it nicely). They need a faster, more efficient means of Market Basket Analysis, without the need for a data expert on the team; that’s exactly what we’re delivering!
Market Basket Analysis Made Easy
Instead of slogging through all that sales data yourself, building spreadsheets, and writing formulas, Peel gives you a visual Market Basket Analysis – pulled right from your Shopify data in a single click.
It’s a big upgrade to what most ecom teams have to contend with if they want this kind of analysis. Seriously, Google “Market Basket Analysis” or “How to do Market Basket Analysis” and you’re going to be hit with entire articles dedicated to teaching the complex process. Time to ditch the pivot tables and heaps of raw data.
Here’s what you get with Peel’s new market basket analysis tool:
- Full view of your product combos
- Visuals of the products (makes life easier at a glance)
- Simple filtering and sorting tools
You can easily filter by date range to target the exact period want to analyze. That makes it easy to narrow down to weeks, months, or quarters. And then you can sort by orders (total, new, or returning) or by sales (new, returning, gross, or net). And voila! You’ll see exactly what product combinations are your most common by order count or dollar amount.
This quickly answers questions like:
- Are my upsells working?
- Should we be offering product bundles?
- What packaging should we optimize for?
Time save, headache save, and most importantly, an accurate signal of your most commonly purchased product combinations.
The Retention Story with Market Basket Analysis
We’re constantly centering our efforts around what we hear and see when listening to our customers and observing the industry.
With the macro picture signaling tough times, we’ve put a huge effort into creating a suite of tools that will boost your retention. Right now, how to best retain customers is the #1 question for most ecommerce teams. Market Basket Analysis is a huge piece of that puzzle.
Our customers are looking to better inform their email marketing strategies, product recommendations, bundle and combo options, and subscription offerings. That’s just scratching the surface of the requests we’ve gotten.
Bottom line, if you know what your customers are purchasing together when they checkout, you can make more strategic and predictive moves. This helps you better target customers with the right products and recommendations via ads and marketing campaigns. More timely and relevant product placement will always help you boost Repurchase Rate and winback conversions.
Market basket analysis will also help your ops team with logistics. Better predictive analytics can inform everything from warehouse logistics to shipping and packaging, making a smoother process for your operations.
Completing the Customer Retention Picture
So now you know the scope of how Market Basket Analysis can help you retain customers and grow. Here’s how it fits into our suite of retention stools:
- Market Basket Analysis - your view of what product combos are most purchased together.
- Purchasing Journey - your visual map of what products your customers buy from their first purchase and each stage of their journey in subsequent purchases.
- Audiences - your hub for creating hyper-segmented customer lists, pushing those lists to your email and SMS platforms. Nurture. Retain. Gain. Our customers are already seeing a 36% revenue increase from segments targeted by Audiences.
- Subscriptions - your full toolkit for understanding when customers convert to subscribers and where your opportunities are for subscription offerings and upsells.
With this suite of tools, you have all the info you need to know what customers are buying, when they are likely to buy them, plus tools to actually take action on that data.
Remember, retention isn’t about maintaining; we’re not equipping you to plateau. Rather, retention is all about leveraging the relationships you’ve built with your customers and using a better set of tools to provide timely value to those customers. That’s the real key to growth in the months ahead!
Stay tuned for more retention stories and strategies for growth!