Up-Sell/Cross-Sell
It’s often more profitable to increase “share of wallet” from your customers than it is to increase just market share. For example:
- A financial services marketer can use market basket analysis to determine what additional products to offer a customer – in some cases doubling the number of financial products held by the average household.
- An insurance company with separate divisions and separate databases for life and automobile insurance customers can merge the two databases and cross-sell insurance products to the most interested customers.
- A retailer can determine what products sell well in combination and then group them together in sales promotions. The retailer can also display these products together in the store.
- An online retailer can recommend products to customers based on previous purchases, or on what products frequently sell in combination.
- A cable company can identify customers that purchase premium digital services, and then target “look-alike” customers (with only basic services) who are most likely to upgrade service.
Data mining can also be used to identify purchase “triggers” -- sequences of events that often precede a purchase, such as a child turning 16 and needing auto insurance.
To learn more about how data mining can help you up-sell or cross-sell your customers, please contact us.
