Paired goods. Placement of goods on the trading floor
In this small and simple case, we will tell you what paired goods are and how to increase business profitability using associative relationships.
So, Pairs are products that are often bought together. In a pair, one product is the key (anchor), and the second is related. On-line service Datawiz.io reveals the pairing relationships of goods using the APRIORI algorithm .
Analyzing shopping baskets, we identify key products and related pairs to them. There can be a huge number of such pairs, limited only by the assortment of the store. Each such pair has its own frequency of purchases, the percentage of probability of purchase together and the number of checks in which the pair appears for the selected period.
For example, a pair of “Snacks-Seafood” and “Beer” is found in 435 checks during the month. Support for a pair - this pair is found in 1.29% of the total number of store receipts for this period. Reliability of the couple - when purchasing the key product Sneki, 60.17% of buyers purchase related products, “Beer”.
"So what?" - you say. “How do I use this data?” What benefits do I get? ” By possessing such information, you can promptly stimulate sales of key products, thereby increasing sales of high-yield related products. Paired product tables are designed to greatly facilitate marketing control.
The second method for the application of paired goods is recommendations regarding the placement of goods on the trading floor. These recommendations are used to understand which products are best placed nearby and which are far away without losing customers.
You can create a schedule for the placement of goods based on Support and Reliability. Points on the chart are pairs of goods. Based on their location on the chart, we can draw conclusions about their placement on the trading floor relative to each other.
1) In sector 1 there are pairs with a strong relationship. The likelihood of buying related products when buying a key is very high. The percentage of checks with these pairs is also high. Good-selling products, such as Sneki and Beer, can be located far from each other and this will not lead to a drop in demand.
2) In sector 2 there are couples in which the likelihood of purchasing related products is reduced, although their support in checks remains high. To correct the situation and increase sales of related products, you should place them next to the key ones.
3) Sector 3 displays random pairs.
4) In pairs from sector 4, the percentage of checks in which they occur is rapidly falling. The likelihood of buying a related product with a key, on the contrary, is growing. Such couples need additional stimulation, for example, promotions and billboards. But at the same time they do not have to be located nearby.
Making a daily analysis and using the associative relationships of the goods, we get the result:
- time saving and efficient use of the trading space;
- reduction in marketing costs;
- obtaining additional profit from the sale of related products without additional investments.