Benchmarking Shopping Carts

    Purchases of each customer in the store seem unique at first glance. The buyers develop the same patterns of behavior based on needs, for example, buying milk and bread every other day, packs of cigarettes every evening, chocolates for tea, yogurt and croissant for dinner, etc. And since, one way or another, people's needs coincide, we can talk about typical buying behavior in certain conditions.



    Analysis of shopping baskets involves the study of relationships and patterns in the behavior of customers of the distribution network. The results of the analysis help to formulate targeted marketing activity, create personalized offers and plan promotions to increase the average check and profit.

    We have already described the analysis of shopping baskets here , and in this article, we will consider a comparison of typical baskets and the possibility of using the results in retail business processes. The ability to visualize and compare baskets with similar products helps the retailer quickly identify patterns in consumer behavior and make the right decisions to optimize their business.

    We will carry out a comparative analysis using the BI Datawiz.io service .

    The service helps to compare two typical baskets with different key products by the main indicators.

    For example, how to determine what goes into shopping baskets on Friday night with Priluki or Marlboro cigarettes is shown in the screenshot below.



    Consider examples of using the functionality of comparing typical baskets in retail processes.

    Example 1. To formulate a strategy for promoting product categories or brands by marketers of a distribution network.
    Compare two shopping baskets:
    • with cigarettes “Priluki”;
    • with Marlboro cigarettes.

    Comparing typical baskets, we see that Priluki cigarettes are bought with instant coffee brands such as Nescafe, McCoff, Jacobs and others. Also, 2 times more often bread and bakery products fall into typical baskets of cigarettes “Priluki”.



    But with “Marlboro” cigarettes, smokers take “Dirol” and “Orbit” chewing gums, Coca-Cola with Pepsi, as well as mineral waters, are frequent purchases of this brand of cigarettes.



    Thus, we get two different persons of customers.

    Priluki cigarette smoker prefers hot instant drinks.

    Smoker “Marlboro” - Coke and monitors the freshness of his breath.

    Therefore, the action, when a customer is offered a glass of instant coffee when buying a block of cigarettes, will be more successful for Pryluk smokers. And for those who buy Marlboro, the cashier may offer to buy chewing gum.

    Example 2. For placing goods on store shelves and efficient use of retail space.

    We use information about typical baskets of a low price segment.

    We will compare baskets with such basic goods as:
    • vodka “Pervak”;
    • Cognac "Uzhgorod".

    As you can see, in the picture below, with Pervak ​​vodka, in 29.2% of cases, they buy Slavutich beer. This figure is 11 times higher than the probability of the same purchase with Uzhgorod brandy.



    Cognac is 2 times more likely to be taken with cola than vodka.



    Place inexpensive beer near or opposite vodka, but sweet water next to cognac and other alcoholic beverages, which are also washed down with Coca-Cola or Pepsi.

    Example 3. For the formation of the layout of advertising media and promotional racks in the store.
    For example, compare typical baskets with low-alcohol drinks such as:
    • Somersby Cider;
    • drink "Revo".

    With a cider, they are very likely to take types of snacks, such as seeds, crackers, chips.



    With Revo other low-alcohol drinks, such as Shake, and cigarettes.



    Placing a promotional rack with snacks on a shelf with cider will increase the likelihood of a joint purchase.
    But “Revo” can be left in a row of low alcohol drinks. they will buy it with other drinks, or place it near the box office to quickly buy it and cigarettes.

    Example 4 . In the formation of marketing activity and the holding of promotions - to increase the likelihood of buying goods together, choosing goods to be wound or making gift sets for the holidays.

    Let us analyze typical baskets with a price of up to 300 UAH, which includes:
    • domestic wines;
    • champagne.

    Comparing the data in the graph below, we see that champagne is bought much more often with sweets, confectionery and chocolate.



    While wine is bought mainly with products for feasts - vodka, cheeses, mayonnaises, sausages, sauces, etc.



    We can conclude that champagne should be used as a promotional item for the holidays. Reducing the price of it to increase the number of purchases or using in sets with boxes of chocolates on promotional stands. Visitors will buy such sets as holiday gifts.

    Example 5. When analyzing baskets by price segment .

    Let's compare 2 typical baskets with vodka. Only in the first baskets will there be vodka “Zapadenka”, in the second - vodka “Finland”.

    Do customers put low and high price segment goods in one basket? Analysis shows that most products are bought either with inexpensive alcohol or with elite alcohol.

    In the picture below, we see that there are many products that are bought with Zapadenka vodka, but have not been bought with Finland vodka for the entire last year.



    And vice versa. Finland is bought with Essentuki water, Martini alcohol, Davidoff cigarettes, and elite alcohol. That is, the buyer allows himself 1 elite product, and tries to pick up others in the same price segment.



    There is not such a big list of brands that buy at the same time as expensive and cheap vodka. These are such brands as: mineral water Mirgorodskaya and Morshinskaya, Pepsi, Sandora juices, Molokia milk, Roshen sweets, Winston cigarettes and bread. The rest of the baskets vary.

    That is, when carrying out promotions and positioning alcoholic beverages, it is worth considering the price segment to which it belongs and to use goods of the same segment in addition to it.

    The described methods are just a few of the possibilities of using information about the goods that the buyer put in his basket. But they already provide an opportunity for the retailer:
    • to formulate the right strategy for promoting the product, depending on the purchasing preferences of customers;
    • develop effective approaches to placing goods on shelves;
    • place promotional racks and superstructures on shelves in the right places, near those goods that are more likely to be bought together;
    • determine the necessary pricing policy, manage stocks, properly reduce and raise prices for related products.

    The use of information about shopping baskets with reference to customer loyalty and customer segmentation programs works great, this provides additional opportunities for analysis and an integrated approach to studying customers in food retail. We will talk about this in more detail in the following publications.

    The BI Datawiz.io service enables the retailer to compare shopping baskets, identify patterns in consumer behavior and develop strategies for promoting various products for additional profit.

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