Transactions/Basket Analysis
Philippe Nemery - Predictive Expert - SAP BeLUX
Predictive Analytics (PA2.4)

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© 2016 SAP AG or an SAP affiliate company. All rights reserved. 55© 2016 SAP SE or an SAP affiliate company. All rights reserved.
Anticipate What Comes Next and Drive Better Decisions…
Today!
Social
Network
Customer
Data
Automobiles
Machine
Data
Smart Meter
Point of
Sale
Mobile
Structured
Data
Click Stream
Location-
based Data
Text Data
IMHO, it’s great!
RFID
68%of organizations
that used predictive analytics
realized a competitive
advantage
Ventana Research
52% use predictive
analytics to increase
profitability
55% use predictive
analytics to create new
revenue opportunities
45% use predictive
analytics for customer
services
43% use predictive
analytics for product
recommendations

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Customer/Transactions Data
Know YOUR customers:
CRM Data

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Transactions Analysis
• their historical transactions
• comparing the details and the behaviours to other customers
• their position in the social network
generate the right recommendations of
the right products / services at the right
time for the right customers
by analyzing:

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Analysis
1. Basket Analysis
2. Sequence Analysis
3. Social Network Analysis

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Transactions Data
Transactions can be weighted (price
or number of a specific item).
Users Products

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Transactions Data

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Transactions Data

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Transactions Data

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Transactions Data

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Transactions Data

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Transactions Data Support, Confidence

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Transactions Data Support, Confidence

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For each customer: a product and the associated probability.

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For each customer: a product and the associated probability.

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Demo
Link

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Basket Analysis For each customer: a product and the associated probability.

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Predictive Analytics Delivers High Return in Retail
220% increase
campaign responses
10% improvement
in sales forecasts
23
Eldorado LLC | Headquarters Moscow, Russia | Products and Services Consumer
electronics and domestic appliances | Employees 15,000 | Revenue €2.4 billion
(2012)
Groupe SAMSE | Headquarters Grenoble, France | Products and Services
Distribution of building materials and tools | Employees 5,000 |
Revenue €1.138 million
Predictive models that require just a week, rather than months, to update
Japan’s leading mail order business with 4 million active customers and 9.5
million orders a year, is using predictive analytics solutions from SAP to forecast
purchasing probability and enable a more targeted distribution of its over 20
product catalogs to relevant consumers (insight into Individual Customer
Preferences)

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Predictive Analytics Delivers High Return in Retail
14% ROI with a
8.5% increase in
travel sales
24
Company American Automobile Association (AAA) | Headquarters Orlando, Florida
Industry Insurance | Products and Services Roadside assistance; automotive,
travel, and financial services | Employees >40,000
Company Home Shopping Europe GmbH (HSE24) | Headquarters Ismaning,
Germany | Industry Retail | Products and Services Fashion, jewelry, beauty and
home products | Employees Approximately 2,900 (including external call center
and logistics personnel) | Visitors €515 million (2012)
360-degree view of customer information, helping ensure more focused, targeted
campaigns and customer interactions
Optimized marketing campaigns across channels for nearly 70% of members
Cut attrition and increased overall customer lifetime value by extending targeted
offers to members with low usage
Meaningful customer interactions, helping create offers that are relevant to
consumers and more accurately reflect unique demands

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Predictive Analytics Delivers High Return
7x response rate
vs. control group
Reduce e-fraud
over $1B annually
transactions
5x increase
in response rates
700 models
for churn and X-sell
260% increase in
campaign response
ate
3% decrease in
monthly churn rate
220% increase
in campaign responses
10% improvement
in sales forecasts
Retail
Banking
Telco
14% ROI with a 8.5%
increase in travel sales
> 5B rows of data
being integrated from
state agencies
Other 20,000 distinct social
communities identified
40B events analyzed per
year – up to 3% lower
fuel and tire costs
25

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- Link to download the trial version of Predictive Analytics (PA2.4):
- Link to Solution Overview
- Link to Solution Overview II
- Link to customer references
- Link to Slide-Deck
- Link to Youtube-Video
nemeryphilippe@nemeryp
Philippe.Nemery@sap.com
Contact me: