As a retailer, there is an ongoing need to analyze many aspects of the consumer experience and why they make the purchases that they make. Of the many areas of consumer practices to focus on, it is especially important to look into why some products sell better than others. Furthermore, it is helpful to look at which items tend to be purchased together and how these pairings can be beneficial to the retailer as well as the customer.
There are a number of benefits to analyzing which items are purchased together by customers. Four main reasons for performing this research include determining which sales and product bundles to offer, deciding on product placement, creating the best customer experience, and making a profit. While there are many other benefits to conducting this analysis, these four areas tend to fluctuate and, thus, require ongoing attention.
1- Sales and Product Bundles
Many companies spend a lot of time determining which items should be placed on sale and which ones can be grouped together for product bundles. Though items listed for sale are decided based on other factors, this helps because retailers know what’s currently in demand and can give customers a price discount. Additionally, certain items can be listed together and a discount can be given when they are purchased together.
2- Product Placement
Another benefit of closely watching which items are bought together is knowing where to place products in a store and on your website. You will be able to determine if certain products should be close to the entrance, together in-aisle, or near the cashier in your store. You can also see where on your website they should be listed (home page, new item page, or special collections page).
3- Creating the Best Customer Experience
Customers like when they are presented with convenience and their needs are prioritized. When items are sold together, this benefits the customer and saves them time so that they don’t have to look for other products that are best used together. Grouping products together also helps to encourage brand and store loyalty.
4- Making a Profit
It is no question that making a profit is on the list of priorities of retailers. When a retailer groups items together more products are sold, and this increases profits for the company. Making a profit on certain items also informs the retailer of the type of products that may be a good idea to introduce in the future in their store.
As found on mchdata.com, consumer research companies can gather the necessary information you need by implementing a variety of programs into your business that will produce the data you need. This valuable information can be used for the purposes listed above and can be consulted before making other important business decisions.
The world of retail is often changing and requires retailers to be able to supply the demand of consumers. The buying habits of customers is critical to a company’s overall success and its ability to surpass its top competitors.