Kx Systems, a Big Data software specialist, has unveiled Kx for Retail Range Optimization, a solution designed to enable retailers to gain actionable insights on product assortment through basket analytics.
With Kx for Range Optimization, retailers can perform basket analytics on historic and real-time datasets to understand product substitutability, affinity and loyalty. Users can specifically leverage the platform to identify:
- Product affinity and cross-sell/upsell opportunities;
- Merchandising personalization; and
- Product recommendation engines.
After completing basket analytics, retailers can use machine learning to cluster products based on importance and substitutability metrics, allowing users to define customer decision partitions based on product groupings. The decision tree created allows the user to fully immerse themselves in the product for partition level insight.
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Dashboards give insights into key product-level metrics that enable retailers to decide which products to target to different customer segments. The platform also allows “what-if?’ simulations to understand likely demand transference and the commercial impact of any range increase, decrease or pricing and promotional strategies.
