Decision Management for Merchandising: Understanding what drives purchases
Retailers use Fair Isaac’s Decision Management, and particularly our advanced predictive analytics technologies, to gain greater insights into customer purchases via product purchase combinations and purchase timings and sequences.
· Basket analysis. Fair Isaac Decision Management for Merchandising provides retailers with advanced predictive analytics capabilities to detect product “bridges” and “bundles” that exist among its customers’ product purchase history. A bridge product stimulates movement from shopping in one category to shopping in another. By promoting such products, a retailer can migrate customer buying behavior to a more profitable path. Product bundles are groups of products that tend to be purchased together with a high level of consistency. Understanding bundles allows merchandisers to build promotional programs and design store layouts in ways that drive sales growth.
· Purchase sequence analysis. A unique capability of Fair Isaac’s analytics is that it can present merchandisers with a rich understanding of the sequence and timing of purchases made by consumers. These insights generate many potential applications, particularly in identifying seed products—that is, products that are responsible for driving the sale of other “peripheral” products. For example, a digital camera is a seed product in the sense that it drives the sale of digital camera accessories, such as memory sticks, rechargeable batteries, a camera bag and other goods.
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