Retail Basket Analysis: What Customers Buy Together
How to use basket analysis to identify product affinity, improve cross-selling, optimise store layout, and increase average transaction value.
What Is Basket Analysis?
Basket analysis (also called market basket analysis) examines which products are frequently bought together in the same transaction. It answers questions like:
- *Do customers who buy product A also buy product B?*
- *What is the most common two-product combination in our baskets?*
- *If I promote product X, what secondary purchases does it drive?*
For retail, this is one of the most actionable forms of data analysis — it directly informs merchandising, promotions, store layout, and staff upsell training.
Running Basket Analysis in AskBiz
With POS data connected, ask AskBiz:
- *'Which products are most frequently bought together in the same transaction?'*
- *'What is the most common product bought alongside [product name]?'*
- *'Show me product pairs with a high co-purchase rate but low co-placement in my store'*
AskBiz generates affinity pairs ranked by:
- Support — how often do both products appear together (as a % of all transactions)?
- Confidence — of all transactions containing product A, what % also contain product B?
- Lift — how much more likely is B to be bought when A is present, compared to B's baseline purchase rate?
Using Basket Analysis to Increase ATV
Store layout: place high-affinity products near each other. Complementary products trigger impulse additions when they're in sight. Classic retail: place batteries near electronics, accessories near fashion basics.
Bundling and promotions: create bundles from frequently co-purchased products at a slight discount — this increases basket size while looking like a saving to the customer.
Staff upsell prompts: train staff to suggest the most common companion product when a customer picks up a key item. 'A lot of customers who take the [product] also pick up [companion] — would you like to see it?'
Receipts and receipts marketing: post-purchase, email or print receipts featuring the top companion product for what the customer just bought.
Seasonal Basket Patterns
Basket composition changes seasonally. Winter baskets often include more complementary warm products; summer baskets include more impulse accessories. Run basket analysis separately for different seasons or promotional periods to understand these shifts.
Ask AskBiz: *'How did the basket composition for [product category] change between summer and winter last year?'* to identify seasonal cross-sell opportunities.