2020: Week 15
This week we have a special guest setting the challenge: our colleague at The Information Lab, Gwilym Lockwood ! Here at Chin & Beard Suds Co., we’ve been looking at our sales data. The numbers are good, but we’re noticing that people tend to buy the same stuff each time, which means there’s a lot of untapped opportunity for cross-selling. For example, it’s nice that Gwilym buys shaving soap once every two months, but he doesn’t buy anything else. What other products might he be interested in? How can we give him targeted recommendations that he might actually like? What do other customers with his purchasing habits also buy? We can use market basket analysis to answer these questions. In market basket analysis, we need to calculate three key metrics: support, confidence, and lift. We calculate these metrics for individual items and for association rules between items. You can read a lot more about market basket analysis here . I’ll go through a quick example of an as...