Hop Designer
Mayank Verma
Category
Merchandising
The Frequently Bought Together Hop helps you 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 strategy can effectively boost sales by increasing revenue and attracting customers. 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 a customer has 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:
Barbie Art Studio Playset and Matchbox Hydro Car Wash make up 62.2% of all orders (Support).
The probability of buying of a customer buying Matchbox Hydro Car Wash if they have added Barbie Art Stuido Playset to their cart is 34% (Confidence).
A customer is 3.2 times more likely to purchase Matchbox Hydro Car Wash if Barbie Art Studio Playset is in their cart (Lift).
Integration(s)
Walkthrough
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 Bundling Strategy: These insights can inform merchandising on your website. Frequently co-purchased items can be bundled together on the website, making it convenient for customers to find complementary products. Effective product bundles can improve AOV and improve return on ad spend by encouraging customers to spend more on your website. A data-driven product bundling strategy helps you improve your CAC to LTV ratio, to justify spending more on your acquisition efforts.
Product Recommendations: By recommending complementary products to customers based on these patterns, stores can enhance the user experience, increase cross-selling opportunities, and boost average order value through effective bundling marketing strategies.
Dynamic Pricing Strategies: Analyzing product combinations of complementary products can inform dynamic pricing strategies. E-commerce stores can offer discounts or cross sell bundles on frequently co-purchased items at a discounted price. This incentivizes customers to buy multiple products, increasing sales, profit margins, and customer satisfaction.
Inventory Management: Identifying product bundles and cross-sell associations assists in inventory clearance when you need to move slow-moving products. Further, products often bought together can be stocked closer to each other in the warehouse, streamlining the packing process and reducing distribution costs. 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 personalized approach increases the likelihood of conversions and customer retention.
In This Report
Metrics
Support
Confidence
Lift
Est. Order Value Increase %
Grouped By
Product Pairing
Connect your Shopify store and automate this report. You will never have to manually work with data again.