Lift is the most widely used tool for market basket analysis. Most customer, when they are buying a torch, will also buy batteries because the torch batteries may die anytime and for such situations the customer wants to keep themselves stocked. There are useful insights that can be drawn from a customer’s basket.įor e.g. Market basket refers to the list of products a customer purchases on a visit to a retail store. The consumer is most likely to choose a product combination that has the highest consumer surplus.ĭo watch this video to see how bundling works explained with examples: Consumer surplus is basically the value customer attaches to a product minus the actual cost of the product. The pricing of bundles is based on the assumption of consumer surplus. How to determine that price which is attractive for the customers and is profitable to the company? In bundled price, companies try to sell products for a lower price than what would be charged if products would be bought individually. Why do companies go for product bundling?įor the simple reason which is to motivate the customer to purchase several products and services from the same company. But what happens when the products are bundled together and the price of the bundle is not equal to the summation of prices of individual products. The customer pays equal amount whenever he makes a purchase of the product. Until now we have discussed linear pricing models. Pivot tables also help in data visualization which makes it easy to study as well as present data.ĭo watch this video to get a better understanding of how to use pivot tables to sort and categories data. Not only that, with the help of slicers it is easy to navigate through data by quick filtering. Pivot Tables help with summarizing large detailed data set into compressed insights. It is important to slice and dice this data to gain insights.

The data that is made available is in the form of rows and columns of random numbers and text. Study the impact of a marketing promotion on sales.ĭo these scenarios seem relevant to you? They should because these are the kinds of analysis most of us would be doing once, we get to our jobs.Analyze the impact of weekends and festive seasons on your sales volume.Investigate the sales volume and % Sales for every month and for different products.Think of a scenario where you are the Area Sales Manager at a footwear firm.

Excel tools for data analysis