Download PDF
C5i > Case Studies > Assisted a B2B retailer to create product bundles and develop pricing strategies so as to increase the revenue through upsell /cross-sell
C5i Logo

Assisted a B2B retailer to create product bundles and develop pricing strategies so as to increase the revenue through upsell /cross-sell

Technology Category
  • Analytics & Modeling - Predictive Analytics
Applicable Industries
  • Retail
Applicable Functions
  • Sales & Marketing
Use Cases
  • Demand Planning & Forecasting
  • Inventory Management
Services
  • Data Science Services
The Challenge
The B2B retailer company was looking to increase sales from existing customers by creating customized offers such as discounts and bundled offers. This strategy was aimed at giving them a competitive edge in the market. Additionally, the company wanted to reduce inventory levels of slow-moving SKUs to reduce costs and wastage. The challenge was to analyze past purchase history, identify product associations, and determine appropriate discounts for SKUs for each customer.
About The Customer
The customer is a B2B retailer company operating in the retail industry. The company was looking to increase its sales from existing customers by creating customized offers. These offers included discounts and bundled offers. The company also aimed to reduce inventory levels of slow-moving SKUs to reduce costs and wastage. The company was seeking a solution that would give them a first-mover advantage and capture customer attention and loyalty.
The Solution
The solution involved dividing the entire customer base into 23 clusters based on their past purchase history. From a portfolio of 2500 SKUs, the top 40 SKUs were chosen for the bundling analysis. Association Rule Mining (ARM) / Market Basket Analysis was performed to identify product associations based on the past transaction history of a customer group in a given cluster. Discounts for each SKU were determined for every customer, considering the discount offered to similar customers in the past for the same SKU. The final discounted price of the bundle was obtained after computing the ratio of the quantities of both the products in the bundle. An additional discount was calculated to make the bundle more attractive while still making a healthy profit of 10%.
Operational Impact
  • The retailer was able to identify the products which are mostly bought together and can be bundled easily.
  • Helped in reducing the inventory for slow-moving products by bundling them with most popular products among customers.
  • The client was able to target customers by offering them product bundles ranked higher in Market basket analysis and had higher chances of converting it into a sale.

Related Case Studies.

Contact us

Let's talk!

* Required
* Required
* Required
* Invalid email address
By submitting this form, you agree that IoT ONE may contact you with insights and marketing messaging.
No thanks, I don't want to receive any marketing emails from IoT ONE.
Submit

Thank you for your message!
We will contact you soon.