Data Mining in Makreting White Paper
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.
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.
- 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 real-time 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.