The analysis of associations, or “Market Basket Analysis”, has become established among large retailers and more recently in online retail sales. These analyses typically support sales areas in defining promotional campaigns, in product presentation on the shelf and in catalogs and, above all, in the development of cross-selling strategies.
CRIF developed a solution based on the calculation of standard indicators which revolve around the analysis of associations, a “pruning” algorithm to thin out the tree of combinations, and prioritization rules to sort the association rules using the calculated indicators.
CRIF’s experience collaborating with one of our customers is presented below, in which Market Basket Analysis was successfully applied for the benefit of the entire financial institution. The aim was to identify, over the entire current customer portfolio, the best banking product to offer customers based on previously acquired products.
