In this blog, we highlight key insights received from Prasanna K Ammiraju, Associate Director – Data & Analytics, about our IP on Market Basket Analysis.
What was the objective of the project?
So, we had a customer requirement from a retail store in the Middle East customer. The client is a supplier to the supermarket chains in the region. They manufacture products for their own store and for supplying to other supermarket chains.
Now, the client was receiving a huge volume of ordering data from the different supermarkets. They needed a solution to understand the ordering pattern and predicting inventory and stock requirements in advance.
Additionally, they wanted a recommendation engine that would help in cross-selling.
Is the solution customized for a particular segment of customers?
Yes. It is very important to choose the right target segment. It is essential to understand your customer profile to develop appropriate features to suit your customer’s unique taste and preference.
Our solution is currently developed for small and mid-size enterprises who have low data volumes, say 1 million, and are looking for cost-effectiveness at a reasonable price. The big companies offer their product at a high price plus they charge extra for customizations. To end it all, one of the major concerns is data security. You may have small volume of data, but still you are worried about the security of your data.
What are the major factors a customer should consider before selecting the right technology partner for MBA
- Does the company have previous experience implementing a MBA use case?
- Are they offering a on-premise based solution or an SAAS based solution hosted in public cloud?
- Does the company provide end-to-end solutions, or do I need to hire a different team to help with the implementation?
- What are the recurring monthly costs?
- Custom solutions have higher initial costs but lower costs for additional customizations. Cloud based solutions have lower initial costs but higher customization costs
- The analytics and insights being offered to understand the model workings
How long does it take us to develop the model after receiving the client requirements?
Unfortunately, there is no straight answer for this. It depends on multiple factors like if the customer is ready to rely on third party services, is the current ecosystem ready for AI implementation, the data volume available etc
What are the key business benefits for the retailers?
For retailers, Market Basket Analysis helps in finding insights to establish a connection between products frequently bought by customers. It improves business outcomes and increases profit by recommending the best product combinations.
Market Basket Analysis helps retailers in the following ways:
- Proper placement of products in shelves.
- Cross-selling of products or brands
- Optimize store layout
- Stock availability of most frequently bought products.
- Conduct effective marketing campaigns including offers and discounts.
Would you like to know more about the features of our solution. Request for a demo: info@appstekcorp.com
Prasanna is our expert on AI/ML and our lead Data Scientist who has over 15 years of experience in the Data world. He is bringing his Data Science experience to automation world & cloud, to build innovative solutions using AI/ML. He is an added asset to our team who also loves solving problems.
