What is market basket analysis in SAP CRM-ANA - CRM Analytics?

SAP Term: market basket analysis

• Component: CRM-ANA

• Component Name: CRM Analytics

• Description: A modeling technique based upon the theory that if you buy a certain group of items, you are more or less likely to buy another group of items. Market Basket Analysis is a typical application of the data mining method Association Analysis.

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• Key Concepts: 
  Market basket analysis is a data mining technique used to analyze customer purchasing behavior. It looks at the items that customers purchase together and identifies patterns in the data. This analysis can be used to identify potential cross-sell and upsell opportunities, as well as to identify customer segments with similar purchasing habits. 
  
  How to use it: 
  Market basket analysis can be used in SAP CRM Analytics to analyze customer purchasing behavior. The data can be used to identify potential cross-sell and upsell opportunities, as well as to identify customer segments with similar purchasing habits. The analysis can also be used to identify product combinations that are popular among customers, which can help inform marketing and promotional strategies. 
  
  Tips & Tricks: 
  When using market basket analysis in SAP CRM Analytics, it is important to ensure that the data is accurate and up-to-date. Additionally, it is important to consider the context of the data when interpreting the results of the analysis. For example, if a particular product combination is popular among customers, it may be due to a promotion or other external factor rather than an inherent preference for the combination. 
  
  Related Information: 
  Market basket analysis is closely related to other data mining techniques such as association rule mining and clustering. Additionally, market basket analysis can be used in conjunction with predictive analytics techniques such as regression and classification to further refine the results of the analysis.