The introduction of the barcode scanner ushered in an era of metrics-based decision making for retailers. It was the first data analysis revolution in retail — providing a complete and reliable source of objective sales data. It contains everything about the sales transaction — or shopper basket — to answer questions such as:. However, the POS T-log has not been systematically leveraged to answer these types of questions. That is because this level of depth is not available from POS data that is typically summarized first and then stored in traditional data warehousing systems.
Simplify Market Basket Analysis using FP-growth on Databricks
Simplify Market Basket Analysis using FP-growth on Databricks - The Databricks Blog
Recent advancements in data analytics technology have opened up a world of possibility for players in the food and beverage sector to increase their operational efficiency and delight their customers. The advancements have increased to such a level that data scientists have been able to create algorithms that accurately predict the next group of items you are about to buy based on a certain group of items that were previously purchased. For instance, people who buy beer and plastic mugs are more likely to buy chips as their next item. Similarly, retailers can create relationships between specific items and accurately predict which items will be purchased next by assigning a certain level of probability.
Market Basket Analysis (Power BI DAX Tutorial)
I have decided to spend some more time on Market Basket Analysis, but before I get into the storytelling part of it, I had to clean up and fix a few things in the model file for the Market Basket Analysis that I created a few years ago. Market Basket Analysis is very important as retailers and CPG companies try to understand consumer behavior, particularly when it comes to deciding which products should be promoted, as the hope is that although we might be taking a margin hit on the promoted product, the rest of the products that we are hoping will get purchased in the same market basket will hopefully more than compensate for the cost of promotion. You can download the updated model here. Let us walk through the data first… Initially, we have two tables in our model, Sales and Product.
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