The client wanted inTouch to measure customer propensity to purchase cross-category services – fitness customers’ affinity to purchase beauty services and vice-versa – and investigate substitute and complimentary relationships among the service offerings. inTouch was mandated – as part of a rewards program it had devised and implemented – to analyze customer purchase records and design customer segment-specific cross- and up-sell tools for frontline staff to use. The analysis was also expected to build out baskets of service offerings that could be inputs to future bundling offers.

1. Market Basket Analysis:
examining cross-category incidence
Client: One of India’s largest Beauty & Fitness Center Chain

2. Market Basket Analysis
inTouch has delivered year-on-year benefits to
several clients in a wide variety of businesses
– Consumer, Retail, Ecommerce, Food &
Beverages, Jewelry, Beauty & Healthcare,
Founder–Director: ‘Way of Life’ has now become a way of doing Education, Satellite and Web Communication,
business for us! Petroleum, HR Services and more – over
several long term and on-demand
Manager–CRM: inTouch helped us build and nurture what many engagements for the past 5 years.
other CRM agencies had just about begun to ruin – our customer
Salary Computational Tool for the largest
relationships.. temp staffing business in India >> predicts
market benchmarked salaries based on skills
S t o r i e s
and attrition scores
The client wanted inTouch to measure customer propensity to
Pricing and Discount Optimization for the
purchase cross-category services – fitness customers’ affinity to
world’s largest Satellite Communication
purchase beauty services and vice-versa – and investigate business >> has delivered more than $100
substitute and complimentary relationships among the service million in potential annual savings for the
S u c c e s s
business
offerings. inTouch was mandated – as part of the ‘Way of Life’
rewards program it had devised and implemented – to analyze
customer purchase records and design customer segment- Sales Program Effectiveness for America’s
largest Air conditioning systems provider >>
specific cross- and up-sell tools for frontline staff to use. The
has afforded visibility into rates of return
analysis was also expected to build out baskets of service delivered by various marketing programs
offerings that could be inputs to future bundling offers. across sales territories in North America
The case
Supply-Demand Matching & Optimization Tool
for a large Staffing Service provider in India >>
The client was looking to upgrade customers that had undergone
has brought down doability turnaround from 3
fitness programs to its suite of beauty services. The challenges weeks to across the table for the salesforce
were manifold –
Topline growth oriented rewards programs for
1. The brand was perceived predominantly as one that
a market leading Filter Coffee business in India
stood for fitness >> has delivered a 3-fold increase in revenues
2. Sales staff hard sold customers such services that fetched for 3 straight years for the 425 outlet chain
highest commissions, regardless of what customers might
actually need/benefit from
3. The client had significant spends on short term bundled Customer Feedback Decision Support and
offers that did not achieve revenue objectives Smart Response System for India’s largest fine
dining restaurant chain and many more
market leading café and QSR chains >> drives
a significant percentage of repeat visits across
the 20 outlet restaurant chain

3. Analysis Techniques
inTouch used Association Rules and Multivariate Logit Models to examine cross-category
incidence between Beauty and Fitness services. Association rules are used to group subsets of
product categories together. The Multivariate Logit Model identifies and quantifies cross–
category choice effects of marketing–mix variables.
Results
Results of the analysis (see
Variable Sessn_Pkg Target_Pkg Bod_Frmr Full_Wxg FMP
illustration alongside) show all
Direct Effects cross–category effects to be
Intercept 0.89 1.79 2.04 0.83 -1.69
negative and significant. The
Loyalty 0.73 0.71 1.29 0.86 0.91
Time -0.21 -0.33 -0.26 -0.19 0.87 negative values lead to
Price -0.76 -2.00 -0.88 -0.01 0.58 considering these two
Offers 2.19 0.13 -0.39 0.38 0.09
Cross-Category Effects categories as substitutes –
Size 2.12 2.12 2.01 2.27 2.27 they depict complimentary
Sessn_Pkg - -1.89 -1.93 -2.08 -1.67
purchase behavior. The more
Target_Pkg -1.89 - -3.02 -1.39 -1.72
Bod_Frmr -1.93 -3.02 - -1.70 -0.95 negative the estimates are
Full_Wxg -2.08 -1.39 -1.70 - -1.93 closer is the complimentary
FMP -1.67 -1.72 -0.95 -1.93 -
relationship.
The Business Solution
The illustration is for a limited number of categories. The complete set of results delivered to
the client – as part of the business solution – included parameter estimates across all service
categories, suggestive selling (cross- and up-sell) models and recommendations on bundling of
offers.
Bottomline
Across hundreds of service offerings, and potentially numerous permutations and
combinations, the business was able to choose those that are likely to result in high customer
response ratio. The business would now be able to predict, at a customer segment level, what
combination of service offerings are likely to be bought more readily by customers.

4. Every day analytics
Assured Results and RoI
Incremental and scalable
Built and managed for your business
inTouch analytics, Floor 2, #33/5, NHS Road, V. V. Puram, Bangalore, India. Pin: 560004
Mail response@be-in-touch.com Call +91-80-32929411 Visit www.be-in-touch.com