Retail Basket Analysis: What Customers Buy Together
How to use basket analysis to identify product affinity, improve cross-selling, optimise store layout, and increase average transaction value.
What Is Basket Analysis?#
Basket analysis (also called market basket analysis) examines which products are frequently bought together in the same transaction. It answers questions like:
- *Do customers who buy product A also buy product B?*
- *What is the most common two-product combination in our baskets?*
- *If I promote product X, what secondary purchases does it drive?*
For retail, this is one of the most actionable forms of data analysis — it directly informs merchandising, promotions, store layout, and staff upsell training.
Running Basket Analysis in AskBiz#
With POS data connected, ask AskBiz:
- *'Which products are most frequently bought together in the same transaction?'*
- *'What is the most common product bought alongside [product name]?'*
- *'Show me product pairs with a high co-purchase rate but low co-placement in my store'*
AskBiz generates affinity pairs ranked by:
- Support — how often do both products appear together (as a % of all transactions)?
- Confidence — of all transactions containing product A, what % also contain product B?
- Lift — how much more likely is B to be bought when A is present, compared to B's baseline purchase rate?
Using Basket Analysis to Increase ATV#
Store layout: place high-affinity products near each other. Complementary products trigger impulse additions when they're in sight. Classic retail: place batteries near electronics, accessories near fashion basics.
Bundling and promotions: create bundles from frequently co-purchased products at a slight discount — this increases basket size while looking like a saving to the customer.
Staff upsell prompts: train staff to suggest the most common companion product when a customer picks up a key item. 'A lot of customers who take the [product] also pick up [companion] — would you like to see it?'
Receipts and receipts marketing: post-purchase, email or print receipts featuring the top companion product for what the customer just bought.
Seasonal Basket Patterns#
Basket composition changes seasonally. Winter baskets often include more complementary warm products; summer baskets include more impulse accessories. Run basket analysis separately for different seasons or promotional periods to understand these shifts.
Ask AskBiz: *'How did the basket composition for [product category] change between summer and winter last year?'* to identify seasonal cross-sell opportunities.
Frequently Asked Questions
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