The Frequently Bought Together Hop is a report to gain insights into customers' buying patterns and identify relationships between products. It enables online stores to identify products that are often purchased together in the same order and make data-driven decisions about product bundling, cross-selling, and targeted promotions. This report is also known as a Market Basket Analysis.
The report contains 3 metrics:
Support: This is the proportion of orders that contain both products A and B.
Confidence: This is the probability of purchasing product B if we a customer has have purchased product A.
Lift: How many times the probability of buying product B increases if product A is in the order cart.
The report above can be interpreted as such:
Hot Wheels and Timberland make up 62.2% of all orders (Support).
The probability of buying of a customer buying Timberlands if they have added Hot Wheels to their cart is 34% (Confidence).
A customer is 3.2 times more likely to purchase Timberland | Mens 6 Inch Premium Boot if Hot Wheels Speedtropolis Track Set is in their cart (Lift).
How to use this Hop.
Simply create an Airboxr account and connect your Shopify store to automatically run this export/analysis for your store. If you already have an account, click on the Add to my Collection button above.
Product Recommendations: By recommending related products to customers based on these patterns, stores enhance the user experience, increase cross-selling opportunities, and boost average order value.
Dynamic Pricing Strategies: Analyzing product combinations can inform dynamic pricing strategies. E-commerce stores can offer discounts or bundle deals on frequently co-purchased items. This incentivizes customers to buy multiple products, increasing sales and customer satisfaction.
Inventory Management: Identifying product associations assists in inventory management. Products often bought together can be stocked closer to each other in the warehouse, streamlining the packing process. It minimizes stockouts, ensures timely deliveries, and enhances overall operational efficiency.
Targeted Remarketing Campaigns: E-commerce stores can create targeted marketing campaigns based on this report. Customers who buy one product from a popular combination can be sent personalized offers for related items. This tailored approach increases the likelihood of conversions and customer retention.
Product Bundling: These insights can inform merchandising on your website. Frequently co-purchased items can be strategically bundled together on the website, making it convenient for customers to find complementary products. A user-friendly layout enhances the shopping experience and encourages additional purchases.
Seasonal Planning: Understanding changing market basket patterns during different seasons or holidays enables e-commerce stores to plan their inventory and marketing strategies accordingly. Season-specific product associations guide promotional activities, ensuring products align with customer preferences during specific times of the year.
In This Report