Transactions / Basket Analysis

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Transcript of Transactions / Basket Analysis

Page 1: Transactions / Basket Analysis

Transactions/Basket Analysis

Philippe Nemery - Predictive Expert - SAP BeLUX

Predictive Analytics (PA2.4)

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© 2016 SAP AG or an SAP affiliate company. All rights reserved. 55© 2016 SAP SE or an SAP affiliate company. All rights reserved.

Anticipate What Comes Next and Drive Better Decisions… Today!

Social

Network

Customer

DataAutomobiles

Machine

DataSmart Meter

Point of

SaleMobile

Structured

DataClick Stream

Location-

based DataText Data

IMHO, it’s great!

RFID

68% of organizations

that used predictive analytics

realized a competitive

advantageVentana Research

52% use predictive

analytics to increase

profitability

55% use predictive

analytics to create new

revenue opportunities

45% use predictive

analytics for customer

services

43% use predictive

analytics for product

recommendations

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Customer/Transactions Data

Know YOUR customers:

CRM Data

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Transactions Analysis

• their historical transactions

• comparing the details and the behaviours to other customers

• their position in the social network

generate the right recommendations of

the right products / services at the right

time for the right customers

by analyzing:

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Analysis

1. Basket Analysis

2. Sequence Analysis

3. Social Network Analysis

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Transactions Data

Transactions can be weighted (price

or number of a specific item).

Users Products

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Transactions Data

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Transactions Data

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Transactions Data

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Transactions Data

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Transactions Data

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Transactions Data Support, Confidence

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Transactions Data Support, Confidence

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For each customer: a product and the associated probability.

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For each customer: a product and the associated probability.

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Demo

Link

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Basket Analysis For each customer: a product and the associated probability.

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Predictive Analytics Delivers High Return in Retail

220% increase

campaign responses

10% improvement

in sales forecasts

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Eldorado LLC | Headquarters Moscow, Russia | Products and Services Consumer

electronics and domestic appliances | Employees 15,000 | Revenue €2.4 billion

(2012)

Groupe SAMSE | Headquarters Grenoble, France | Products and Services

Distribution of building materials and tools | Employees 5,000 |

Revenue €1.138 million

Predictive models that require just a week, rather than months, to update

Japan’s leading mail order business with 4 million active customers and 9.5

million orders a year, is using predictive analytics solutions from SAP to forecast

purchasing probability and enable a more targeted distribution of its over 20

product catalogs to relevant consumers (insight into Individual Customer

Preferences)

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Predictive Analytics Delivers High Return in Retail

14% ROI with a

8.5% increase in

travel sales

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Company American Automobile Association (AAA) | Headquarters Orlando, Florida

Industry Insurance | Products and Services Roadside assistance; automotive,

travel, and financial services | Employees >40,000

Company Home Shopping Europe GmbH (HSE24) | Headquarters Ismaning,

Germany | Industry Retail | Products and Services Fashion, jewelry, beauty and

home products | Employees Approximately 2,900 (including external call center

and logistics personnel) | Visitors €515 million (2012)

360-degree view of customer information, helping ensure more focused, targeted

campaigns and customer interactions

Optimized marketing campaigns across channels for nearly 70% of members

Cut attrition and increased overall customer lifetime value by extending targeted

offers to members with low usage

Meaningful customer interactions, helping create offers that are relevant to

consumers and more accurately reflect unique demands

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Predictive Analytics Delivers High Return

7x response rate

vs. control group

Reduce e-fraud

over $1B annually

transactions

5x increase

in response rates

700 models

for churn and X-sell

260% increase in

campaign response

ate

3% decrease in

monthly churn rate

220% increase

in campaign responses

10% improvement

in sales forecasts

Retail

Banking

Telco

14% ROI with a 8.5%

increase in travel sales

> 5B rows of data

being integrated from

state agencies

Other 20,000 distinct social

communities identified

40B events analyzed per

year – up to 3% lower

fuel and tire costs

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