Objectives

Product Affinity enables an organization to detect product/service purchase patterns, linkages, and cross-sell opportunities in order to increase revenues. Results from this application will enable the organization to identify, with a high degree of accuracy, those customers most interested in specific products, services and product/service groupings.

The following graph illustrates the results from one of these types of analyses.

Analysis and Customer Data

The following historic data and analyzes are used to build more effective cross-sell programs:

• Past customer purchase data is used to identify which products/services are acquired by which customer groups.
• Predictive analytics is applied to this data to discover profiles of customers most likely to buy the products in each group.
• These profiles are used to target those customers most likely to respond favorably to specific cross-sell campaign.
• Pair-wise product associations are also determined to enable the constructed of offers featuring the purchase of these pair products.
• Customer product dislikes are also identified so that company does not promote unwanted products.

Benefits

The benefits that can be realized from utilizing this solution:

• Improve customer knowledge allowing company to better understand what their customers are likely to buy and not buy.
• Increase revenue and decrease costs by identifying those customers most likely to respond to cross-sell campaigns.