Brand affinity, also known as basket analysis, allows advertisers to see other brands or specific products consumers are purchasing. In this blog post, we’ll reveal how a basket analysis helps marketers deliver more targeted and effective advertising campaigns.
What is a basket analysis?
A basket analysis is a data-driven review of a brand’s consumer purchase patterns to identify associations between products or brands. By analyzing historical transactional data, advertisers can uncover hidden connections between items frequently bought together by consumers.
For instance, if the analysis reveals that customers who purchase organic baby food products also tend to buy eco-friendly cleaning supplies, advertisers can strategically cross-promote these items or tailor advertisements to resonate with this specific demographic.
Understanding what people are buying alongside their product allows marketers to take a data-driven approach to audience targeting, from a national brand awareness campaign all the way to a hyper-local, DMA driven campaign to drive sales at a local retailer. MiQ’s Consumer Link provides this analysis for our customers to utilize the data for planning programmatic campaigns effectively.
Combining RFM and basket analyses for greater personalization
A recent Walmart press release stated, “Carts give us a glimpse into our customers’ passions, interests and what matters most in their daily lives.” Knowing the purchase patterns and buying habits of a brand’s audience can help marketers create more targeted offers and more personalized messaging.
Let’s look at how a dietary supplement and vitamin brand might use basket analysis and RFM analysis to improve their advertising strategies.
Basket Analysis: Using basket analysis data, the brand sees that people who buy their multivitamins often also get fish oil supplements and immune-boosting products. This indicates that some customers are more deeply invested in their overall well-being than those who only buy the multivitamin.
RFM Analysis: Using RFM analysis the brand segments its customers into different groups based on their behavior. The brand targets its most loyal customers with related product messaging, such as a special discount on fish oil supplements. It targets shoppers with the highest cart value with premium bundles of multivitamins, fish oil, and immune-boosting products.
Combining insights from basket analysis and RFM, the brand can create dynamic product recommendations on their website, showing related products to customers based on their past purchases. For instance, when a customer adds multivitamins to their cart, they may receive a pop-up suggesting complementary items like fish oil supplements.
By utilizing both Basket Analysis and RFM analysis data, the health and wellness brand can deliver tailored advertising messages and offers that cater to different customer segments, thereby increasing personalization, customer engagement, and ultimately, sales.
How MiQ puts RFM and brand analysis into action
RFM and brand affinity analyses provide brands valuable insights to be used for planning, but activating a campaign with MiQ is where these insights lead to action.
Audience targeting. Create audience segments for activation across all leading ad tech platforms given our agnostic position and partnerships in market.
Campaign optimization. By utilizing the insights from RFM and basket analysis, coupled with real-time campaign data, MiQ can identify the most effective channels, ad formats and bidding strategies for each audience target. This precision targeting and campaign monitoring ensures that programmatic media investments are allocated strategically, resulting in improved campaign performance and higher ROI.
Retention strategies. Since retaining existing customers is a top priority for CPG advertisers, RFM and basket analyses, alongside campaign data, allow marketers to execute campaigns that re-engage and retain these customers. Examples include advertising in curated content, creative with personalized offers and other tactics that strengthen loyalty and foster long-term relationships with customers.
Results-driven budget planning. Measuring campaign performance can provide insights across the funnel from brand awareness to footfall and sales. Robust reporting leads to intelligent resource allocation decisions that can maximize the impact of future marketing campaigns, ensuring that investments are focused on the areas that generate the highest ROI.
Ultimately, RFM and basket analysis are tactics in a toolset designed to not only drive better business outcomes, but enhance long term customer relationships that allow marketers to thrive in the competitive CPG landscape.
Let us show you how MiQ can elevate your programmatic media buying to new heights. Click here to schedule a demo of Consumer Link.