Next Gen Market Basket Analysis in Retail: Level up with Generative AI

Editor’s note: Forget dusty market basket analysis techniques. Since Generative AI is inevitably making a buzz around everything marketers set their eyes upon, sitting with our thinking hats might give us something on how data science methodologies are being given a flip with GenAI.

For decades, Market Basket Analysis (MBA) has been on the wish list of every retailer (to understand customer purchase patterns and make informed business decisions) but only a handful are being pushed to the extra mile to find out:

Priority items recommended based on seasonality and day of the week

Naming guidelines for new launch items

Campaigns designed to push complimentary and group dinners to corporates during the festive period.

It’s a simple yet significant analysis — Understand which customers tend to purchase items that complement each other. For example, customers who purchase bread are likely to also purchase butter, jelly, and cheese. But as we skip to 2024, traditional Market Basket Analysis (MBA) techniques are likely to fall short.

Now sprinkle a pinch of generative AI on the top and this engine can easily transform into a powerful recommendation automata.

Sources: https://www.polestarllp.com/blog/market-basket-analysis-in-retail-using-generative-ai