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<p>This article inspired by the situations we had while reviewing our business performance report and the question we get most often. Here I have put together a step-by-step guide explaining, how can you utilize the freely available web data for profit maximization. And how web analytics can transform your thought process over strategy and campaign planning.</p>

<p>Let Us get started.</p>

<p>We all know that great products, services, and quality content can get you traffic, a good ranking, and a reputation for your business. However, choosing the right campaign strategy, planning a better advertising platform, partnering with the perfect placeholder, and engaging with existing customers are what make your business successful in a competitive environment.</p>

<h3>How can web analytics benefit bloggers?</h3>

<p>Hope most of the bloggers would have had or have the situation where they sit and think hours and hours to define the content structure, relating to the topic and gathering required information before actually start writing a blog post. Upon completion of the blog post getting the impression, attracting the audience, and making it a successful post is a dream for any blogger.</p>

<p>The proper understanding of web analytics and visualization of its insights can empower business growth and make life easy for every blogger.</p>

<h3>What is web analytics?</h3>

<p>Let us begin by understanding Analytics first. In simple words, analytics is the process of identifying, interpreting, and communicating meaningful pattern data.</p>

<p>Web analytics means, performing the analytics process on the data collected from your business website. In other words, Web analytics is the measurement of data, gathering information, analyzing, and summarizing your website data. Through web analytics, one can optimize and realize web usage overall.</p>

<h3>Why is web analytics important?</h3>

<p>Web analytics helps you to strategize your marketing campaign and profit maximization by enabling you with specific insights on marketing basics.</p>

<p>Some of the important insights are,</p>

<h4>Suspects</h4>

<p>In web analytics, a suspect can be anyone who visits your website and leaves without taking any action or spends only a few seconds. Web analytics helps you to measure the percentage of such visits.</p>

<p>With this information, you can further analyze which page of your website contributing more towards bounces.</p>

<p>Also, you can evaluate the new visitors and the returning visitors percentage overall.</p>

<h4>Prospects</h4>

<p>Prospects are the one who visits your website and researches more than one page. Based on the hours spent on a particular web page or a product page you can identify the percentage of your website traffic.</p>

<p>Now, you can strategize your market campaign based on the suspects and prospects information. Where are you getting more traffic to your website? Which page of your website contributes more towards bounces? How can you bridge this gap to reduce the bounce rate and convert most of your website visitors to prospects?</p>

<h4>Lead</h4>

<p>You can further study the insights using web analytics such as your traffic source, high lead generation days or months, where are your customers and how are they getting into your website.</p>

<p>Also, you can measure the LEAD percentage with total traffic to identify the disconnect.</p>

<h4>Opportunity</h4>

<p>Web analytics opens up your vision of the world of opportunities. Based on the search keyword, location, and traffic data you can identify the possibility to expand your business.</p>

<h4>Conversions</h4>

<p>Conversions metric from web analytics helps you to retain your market base, strategize your traffic source and plan your advertising strategy. The conversion rate is the percentage of visitors who have taken some action on your website or complete the desired business goal.</p>

<h3>Introduction to Free web analytics tool (Google Analytics)</h3>

<p>There are many tools available in the market. However, Google Analytics is the free best tool for web analytics. You can get all possible metrics and reports from google analytics.</p>

<p>In the rest of this article, I am going to take you through the features available in google analytics and how can you use them for your business benefits.</p>

<p>I am using the demo account of google analytics. If you wish you can do it while reading the steps for better understanding.</p>

<h4>Accessing Demo Google analytics account</h4>

<p>1. Open the following link to access the demo google analytics account.&nbsp;<br />
<a href="https://support.google.com/analytics/answer/6367342?hl=en" target="_blank">Access Demo Account&nbsp;</a>&nbsp;(Go to google and search for &quot;Google analytics demo account&quot;)<br />
2. Find and click the &quot;ACCESS DEMO ACCOUNT&quot; link<br />
3. Login using your Google account username and password.</p>

<p>The demo account uses the real-time data of the&nbsp;<a href="https://www.googlemerchandisestore.com/" target="_blank">Google Merchandise store</a>. This account can be used to navigate Google Analytics and its features.</p>

<p>Once you logged in to Google Analytics, you will see an Audience overview screen as below. Through the left-hand sidebar, you can access all the possible analytics reports and metrics.</p>

<p>Expand each of the below images to see the insights and guidance. Also, in the end, we have provided the downloadable Practical Assignment which you can use to practice google analytics.</p>

<p><a download="" href="https://gecdesigns.com/doc/Google-Analytics.pdf">Click here to download the images in pdf file</a></p>

<h4>Audience overview</h4>

<p><a href="https://gecdesigns.com/img/blog/web-analytics/Slide1.jpg" target="_blank"><img alt="Web analytics slide image" src="https://gecdesigns.com/img/blog/web-analytics/Slide1.jpg" /></a></p>

<p>This is the audience overview screen of google analytics. On the left side, we have a report navigation menu. Under Reports, you have 5 different categories such as Real-Time, Audience, Acquisition, Behaviour, and conversions. Each of these sections generates reports based on specific metrics. In the right top corner, we can set the time frame of the report to generate.</p>

<h4>Audience overview Filters</h4>

<p><a href="https://gecdesigns.com/img/blog/web-analytics/Slide2.jpg" target="_blank"><img alt="Web analytics slide image" src="https://gecdesigns.com/img/blog/web-analytics/Slide2.jpg" /></a></p>

<p>I have generated the total traffic vs Bounce rate report for the period of 3 months from May 17, 2018, to August 17, 2018. Based on this report we can interpret the user retaining percentage and the details of bounce rate vs new users.</p>

<p><a href="https://gecdesigns.com/img/blog/web-analytics/Slide3.jpg" target="_blank"><img alt="Web analytics slide image" src="https://gecdesigns.com/img/blog/web-analytics/Slide3.jpg" /></a></p>

<p>In the above metrics report, we can see the geo traffic, user base, Browser, operating system based metrics. Based on the user base you can strategize your ad campaign. If you see any system-related metrics affects your traffic, you can check whether the design or format unsupported on the website.</p>

<h4>User Explorer</h4>

<p><a href="https://gecdesigns.com/img/blog/web-analytics/Slide4.jpg" target="_blank"><img alt="Web analytics slide image" src="https://gecdesigns.com/img/blog/web-analytics/Slide4.jpg" /></a></p>

<p>User Explorer report reveals the insight of each visitor&#39;s behavior towards your goal. The client ID is assigned to each device from which the user visits your website.</p>

<h4>Demographics report</h4>

<p><a href="https://gecdesigns.com/img/blog/web-analytics/Slide5.jpg" target="_blank"><img alt="Web Analytics slide image" src="https://gecdesigns.com/img/blog/web-analytics/Slide5.jpg" /></a></p>

<p>This is Demographics report, helps you to identify the age group of visitors you have for your website and the gender split. This insight can help you to improve product design and reveal the scope of new market opportunities.</p>

<h4>Acquisition overview</h4>

<p><a href="https://gecdesigns.com/img/blog/web-analytics/Slide6.jpg" target="_blank"><img alt="Web analytics slide image" src="https://gecdesigns.com/img/blog/web-analytics/Slide6.jpg" /></a></p>

<p>Acquisition overview lets you understand the Traffic source, the reason for a sudden spike in conversion and more. Based on referral source metrics you can plan your spending on digital marketing channels.</p>

<h4>Conversions Funnel</h4>

<p><a href="https://gecdesigns.com/img/blog/web-analytics/Slide7.jpg" target="_blank"><img alt="Web Analytics slide image" src="https://gecdesigns.com/img/blog/web-analytics/Slide7.jpg" /></a></p>

<p>Purchase Completed goal Funnel diagram shows the multiple stages of conversions. From the point, the customer enters into the cart to till the payment completion stage a percentage of conversions calculated. This clearly shows how many leads are dropped out before the completion of the conversion stage.</p>

<p><a href="https://gecdesigns.com/img/blog/web-analytics/Slide8.jpg" target="_blank"><img alt="Web analytics slide image" src="https://gecdesigns.com/img/blog/web-analytics/Slide8.jpg" /></a></p>

<p>Purchase Completed goal Funnel diagram (Continuation of the previous slide) Payment stage to purchase completion shown in the above graph.</p>

<h3><a download="" href="https://gecdesigns.com/doc/Practical%20Assignment%20with%20Google%20Analytics.pdf" target="_blank">Practical Assignment with Google analytics (Downloadable) sheet</a></h3>

<h3>How to implement Google Analytics on your website?</h3>

<p>Google Analytics is free for everyone, but you should have a google account to use Google analytics. Google created the step by step guide to the google analytics set up procedure. I have listed the required links below for you to set up and implement google analytics to your website successfully.</p>

<p><a href="https://support.google.com/analytics/answer/1008015?hl=en" target="_blank">Getting started&nbsp;</a><br />
<a href="https://support.google.com/analytics/answer/1042508" target="_blank">Setting up Property&nbsp;</a></p>

<p><iframe frameborder="0" height="420" src="https://www.youtube.com/embed/WiigqyVioCI" width="100%"></iframe></p>

<h3>How can your business benefit from web analytics?</h3>

<p>There are four key metrics that can be tracked and analyzed from web data to expand your business. The Key Metrics are,</p>

<p>1. Total Traffic<br />
2. Traffic Source<br />
3. Bounce Rate<br />
4. Conversion rate</p>

<p>Let us discuss each of this in detail.</p>

<h4>Total Traffic</h4>

<p>Total traffic is the number of people visited your website in a given period. This data can help you to identify which part of the day or days of the week you are getting more traffic to your website. You can analyze whether your campaign contributions to drive traffic.</p>

<p>Importantly, you can segment your visitors by age group, gender, and Geo.</p>

<h4>Traffic Source</h4>

<p>Traffic source is the metrics of the different channels you have acquired traffic to your website. It explains the percentage of traffic sources such as Organic search traffic, Referral, Direct, Social media, and Others. Based on this information you can make a solid decision on your advertising and campaign management.</p>

<p>For Example, If you see your website gets more traffic through social media than you should strategies your marketing spend accordingly, and also, you should ensure branding on social media.</p>

<p>In case, you spend more on Search engine marketing and your traffic source did not show the numbers then probably you may re-think on your SEM strategy.</p>

<h4>Bounce rate</h4>

<p>Bounce rate is the percentage of people who visited your website and left without taking any action or single page visits. This metric helps you to identify which page of your website contributes more towards higher bounces. Based on that information you can re-design your web page. Finding the reason for higher bounces will help you to retain visitors and increase leads.</p>

<h4>Conversion rate</h4>

<p>The conversion rate is calculated based on the goal you have set up for your business. For example, you have two goals set up in your account, and you have a conversion rate of 50% each then you&#39;re overall conversion rate is 100%.</p>

<p>The conversion rate is calculated based on the number of conversions divided by the number of visits to your product page. Based on this information you can figure out which is the most sellable product or service. Further, you can do a market basket analysis, as well as to identify what are all the products bought together by consumers.</p>

<p>Proper implementation plus effective analyze of your web analytics report will surely help in increasing your effectiveness in the online marketplace.</p>

Why is Web analytics important for business success? How can it transform marketing strategy?

How can web analytics transform your business? The best guide

An energetic entrepreneur with 12 years of corporate experience in the field of brokerage operations and functions. A Data Science Aspirant - Business Analytics and Business Intelligence postgraduate professional from a reputed B-School in India. His passion for Data Visualization, Web and social media Analytics helped him to become a learner, speaker, and writer in the space of SEO, Digital Marketing, and UI, UX designs.

 Business Owner

<h2>Introduction to Web and Social Media Analytics (WSMA)</h2>

<h3>Web Analytics</h3>

<p>First, Let us understand Web Analytics, by definition &ldquo;Web analytics is the measurement of data, the collection of information, analysis, and reporting of Internet data for the purposes of optimizing and understanding Web usage. Here the web usage refers to the respective business website usage data.</p>

<p>What are all the information can be gathered from web usage data? And, how could it be leveraged for business benefits? Let us discuss these questions later in this article.</p>

<h3>Social Media Analytics</h3>

<p>Now Let us understand social media analytics. Social media analytics is the practice of gathering data from social media websites or networks such as Facebook, Twitter, Google plus, etc., and analyzing those metrics to understand insights to make business decisions.</p>

<p>Most often people confuse web analytics and Social media Analytics, let us have a clear demarcation between these two. Web analytics uses the data collected directly from a particular business website and Social media analytics uses the data collected from social media networks.</p>

<h3>What information can be gathered from Web Analytics?</h3>

<p>Web analytics Gathers information from the Business website only. In general, Web Analytics tells you about your traffic levels, referral sources, bounce rate, and user behavior on your website.</p>

<p>Web Analytics mainly used to improve the user experience and conversion rate. Below are the few important analysis can be done through web analytics,</p>

<ul>
	<li>Where are your website visitors coming from?</li>
	<li>On which page of your website they are spending more time?</li>
	<li>How are they connecting to your website?</li>
	<li>Which part of the day is your website getting more traffic?</li>
	<li>How well do you retain users?</li>
</ul>

<p>In other words, the four important key metrics can be analyzed from web analytics,</p>

<ul>
	<li>1. Total Traffic</li>
	<li>2. Traffic Source</li>
	<li>3. Bounce Rate</li>
	<li>4. Conversion rate</li>
</ul>

<h4>Total Traffic</h4>

<p>Total Traffic to your website gives insights about where are you getting more traffic, which helps you to understand your target market. In addition, you can analyze which hours of the day and days of the week, you are getting more visits to your websites. Based on this information you can run a campaign to optimize more conversions.</p>

<h4>Traffic Source</h4>

<p>Traffic source is about how you are getting most visitors to your website. Is it through social media, search engines or Referral Sites? Based on that information you can strategize your marketing campaign or write a blog or focusing on a particular social media network. For example, if most of your visitors are coming from social media networks, use that information to brand your business more on Facebook, Twitter or any other social media platforms to boost your website traffic.</p>

<h4>Bounce Rate</h4>

<p>Bounce rate is the percentage of visitors to a particular website who are leaving the site after viewing only one page without navigating other pages on the website.</p>

<p>This could be higher for any number of reasons may be,</p>

<ul>
	<li>Irrelevant content</li>
	<li>Inappropriate designs</li>
	<li>Confusing navigation</li>
	<li>Frequent pop-ups</li>
	<li>Unnecessary ads</li>
	<li>Or, Annoying sounds</li>
</ul>

<p>However, this metric helps you to improve your web design overall.</p>

<h4>Conversion Rate</h4>

<p>A conversion rate is the percentage of visitors who have taken some action on your website or complete the desired goal; it could be purchasing a product, Sign up for news letters, etc.</p>

<p>There are many tools available in the market to track and analyze web data, however, Google Analytics is one of the vital tools for any websites, as it offers the chance to obtain and analyze in-depth statistics about who your customers are, what they are interested in, and how they interact with your website or online store. When you take advantage of the information, which Google Analytics offers, you can make data-informed decisions about the best ways to improve business.</p>

<p>Some important insights that google analytics offers are,</p>

<h4>Audience Overview Website Traffic trend</h4>

<p><a href="https://gecdesigns.com/img/blog/web-analytics/wsma_02.jpg" target="_blank"><img alt="Web and Social Media analytics image" src="https://gecdesigns.com/img/blog/web-analytics/wsma_02.jpg" /></a></p>

<h4>Users Behaviour and Bounce rate metrics</h4>

<p><a href="https://gecdesigns.com/img/blog/web-analytics/wsma_03.jpg" target="_blank"><img alt="Web and Social Media analytics image" src="https://gecdesigns.com/img/blog/web-analytics/wsma_03.jpg" /></a></p>

<h4>Demographics: Overview</h4>

<p><a href="https://gecdesigns.com/img/blog/web-analytics/wsma_04.jpg" target="_blank"><img alt="Web and Social Media analytics image" src="https://gecdesigns.com/img/blog/web-analytics/wsma_04.jpg" /></a></p>

<p>There are many more questions that can be answered through google analytics metrics such as,</p>

<ul>
	<li>How do you acquire users?</li>
	<li>How are your active users trending over time?</li>
	<li>How well do you retain users?</li>
	<li>When do your users visit?</li>
	<li>Where are your users?</li>
	<li>What are your top devices?</li>
	<li>What pages do your users visit?</li>
	<li>How are you performing against goals?</li>
	<li>What are your top-selling products?</li>
	<li>How are your AdWords campaigns performing?</li>
</ul>

<p>In a separate article, we will discuss how does google analytics help to master web analytics to maximize website conversion rate.</p>

<p>Let us now move on to Social media analytics.</p>

<h3>What information can be gathered from Social media Analytics?</h3>

<p>Social media analytics gathers information from social media networking sites and helps businesses better understand customer sentiment, users&rsquo; attitudes, build rich consumer profiles, and, most importantly, build effective business strategies.</p>

<p>There are many tools available in the market to track and analyze social media data.</p>

<p>The most common use of social media analytics is to discover</p>

<ul>
	<li>Sentiments</li>
	<li>Opinions</li>
	<li>Emotions</li>
	<li>Topics</li>
</ul>

<p>Put together known as Sentiment Analysis.</p>

<h3>Sentiment Analysis</h3>

<p>It is the process of computationally identifying and categorizing opinions expressed in a piece of text, especially in order to determine whether the writer&#39;s attitude towards a particular topic, product, etc. is positive, negative, or neutral. Opinion mining or sentiment analysis refers to the use of natural language processing.</p>

<p>Importantly, the first step is to define which business goal we are trying to address through social media analytics.</p>

<p>In general, the business objectives include increasing revenues, reducing customer service costs, getting feedback on products and services, and improving public opinion of a particular product or business division.</p>

<h4>A quick recap of information gathering</h4>

<p><a href="https://gecdesigns.com/img/blog/web-analytics/wsma_info.jpg" target="_blank"><img alt="Web and Social Media analytics infographic" src="https://gecdesigns.com/img/blog/web-analytics/wsma_info.jpg" /></a></p>

<h4>Importance of social media analytics</h4>

<p>There is a tremendous amount of information in social media data. In decades past, enterprises paid market research companies to poll consumers and conduct focus groups to get the kind of information that consumers now willingly post to public social media platforms.</p>

<p>In the past few years, businesses have rushed to use Web and Social Media widely. Almost 94% of all businesses now use some form of social media to promote their brand and engage with customers. While companies sprint to master web and social media marketing, the analysis of data available in web and social media more of a struggle.</p>

<p>The problem is this information is in the form of free text and natural language, the kind of unstructured data that analytics algorithms have traditionally. However, as machine learning and artificial intelligence have advanced, it has become easier for businesses to quantify in a scalable way the information in social media posts.</p>

<p>This allows enterprises to extract information about how the public perceives their brand, what kind of products consumers like and dislike and generally, where markets are going. Social media analytics makes it possible for businesses to quantify all this without using less reliable polling and focus groups.</p>

<p><iframe frameborder="0" height="480" src="https://www.youtube.com/embed/frC74NvVSVw" width="100%"></iframe></p>

<p>&quot;Web and Social media analytics is the backbone for every business moving forward.</p>

An introduction to Web and Social Media Analytics for beginners. Overview of How these data-driven techniques can transform your online business results.

Web and social media analytics: A data-driven Optimization techniques

<p>Market basket analysis is the most important topic for every online or offline retail business. Let us begin by understanding the basics of market basket analysis.</p>

<h2>What is market basket analysis?</h2>

<p>Market basket analysis is a modeling method used to identify the products purchased together. In other words, if a customer buys a product, what is the probability that he/she will buy another product along. Market Basket analysis also called Affinity Analysis.</p>

<p>The objective of market basket analysis is to increase sales by identifying the products bought together by customers. Based on this data or prediction a recommendation can be displayed on the e-commerce website.</p>

<p>Before we move on to the association rules and measures of market basket analysis, let us understand the recommender system. It will give you a complete picture of the market basket analysis concept and objective.</p>

<h4>Recommender System</h4>

<p>The recommender system primarily collects the data of customers purchasing behavior and predicts the possibility of products bought together. Based on the prediction of a buyer&#39;s preferences, it recommends a list of products that the customer is more likely to buy. Amazon, Netflix are great examples of recommender system usage.</p>

<h3>Types of Recommender System</h3>

<h4>1. Knowledge-based Recommendations</h4>

<p>The knowledge base system primarily predicts based on the products bought together. Examples, retail stores, or supermarkets.</p>

<h4>2. Collaborative Filtering Models</h4>

<p>Collaborative Filtering uses the data collected based on the buyer&#39;s preferences and recommends products to a similar type of buyer. For example, Online stores</p>

<h4>3. Content-based Recommendations</h4>

<p>The content-based support system predicts based on the historical purchase data of customers. For example, Movies, News, etc.</p>

<h4>Association Rules</h4>

<p>There are multiple methods to analyze the relationships between products. Association rules are the techniques that help to study the connection between products in common. The result of these methods is the set of rules to describe if this, then that.</p>

<h5>Type of Association</h5>

<p>1. Useful &ndash; Example, On Saturday, Hyper city customers purchase diapers and beer together.</p>

<p>2. Trivial &ndash; Example, Croma customers who purchase maintenance contracts also purchase large appliances.</p>

<p>3. Inexplicable &ndash; Example, when a new home depot store opens in an area, the most commonly sold items are toilet rings.</p>

<h4>Three Important Measures</h4>

<p>To understand the Market basket analysis measures better we have used the below case.</p>

<p>Assume 100 Customers visit a store</p>

<p>10 of them bought bread</p>

<p>8 of them bought butter, and</p>

<p>6 bought both bread and butter</p>

<p>Bought bread=&gt; bought butter</p>

<p>Support&nbsp;= P(Buy both Bread &amp; Butter) = 6/100 = 0.06</p>

<p>Confidence&nbsp;= P(Buy both Bread &amp; Butter)/P(Buy Bread) = 0.06/0.08 = 0.75</p>

<ul>
	<li><em>This is a conditional probability, what is the probability that the customer who has bought bread will also buy Butter</em>

	<p>Lift&nbsp;= Confidence/P(Buy Bread) = 0.75/0.1 = 7.5</p>
	<em>The customers who bought bread are 7.5% likely to buy butter as well. Lift is the measure that helps to improve the performance</em></li>
</ul>

<h3>Why is Market Basket Analysis Important for e-commerce Business?</h3>

<p>Market Basket Analysis helps to increase sales by recommending appropriate products to the customers who are likely to buy. It improves the store credibility and user experience by providing specific recommendations. Also, reduces the time spent by the customers on product search.</p>

<h3>Market Basket Analysis with R</h3>

<p><a download="" href="https://gecdesigns.com/doc/groceries-market-basket-analysis.csv">Groceries DataSet&nbsp;</a></p>

<p><a download="" href="https://gecdesigns.com/doc/marketbasketanalysis.R">Click here to Download Market Basket Analysis R code (R Document)&nbsp;</a></p>

<p>In the given Groceries DataSet, we have 9835 transactions. Each line contains a list of products bought together by customers. Our objective is to do the market basket analysis to find actionable and meaningful patterns or associations with the purchasing of products by consumers. This knowledge could be leveraged in-store layout and boosting sales and online (e-commerce store) product recommendations. To do the market basket analysis for the given data set we are following the below steps,</p>

<p>1. Exploratory data analysis</p>

<p>2. Market basket analysis using R</p>

<p>3. Displaying the result to Analyse the insight</p>

<p>4. Conclusion</p>

<h4>Exploratory data analysis</h4>

<p>There are 9835 transaction line items with 169 columns. Transactions as item Matrix in sparse format with 9835 rows (elements/item sets/transactions) and 169 columns (items) and a density of 0.02609146.</p>

<p>Most frequently purchased products list</p>

<p><a href="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-01.jpg" target="_blank"><img alt="Market Basket Analysis Image" src="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-01.jpg" /></a></p>

<h4>Summary of Groceries data set</h4>

<p><a href="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-02.jpg" target="_blank"><img alt="Market Basket Analysis Image" src="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-02.jpg" /></a></p>

<p>Density is the total number of none empty cells in the product data, in other words, the total number of products bought divided by the total number of possible products in the provided data.</p>

<p>In the most frequently purchased items, we can see that the whole milk is the most purchased in 2513 transactions. The second most purchased item is Vegetables 1903. If you add all these items, we get the total number of purchased items in the given dataset, which is 43,367 total items.</p>

<p>Elements section represents the size of the transactions, there are 2159 transactions that have only one item and 1643 transactions have only two items so on. There is only one transaction with 32 items and it occurred only once.</p>

<p>From the five-number summary stats, we can understand that the minimum transaction product is one and max is 32 with a median of 3 items per transaction. Also, it is a right-skewed distribution data. In the 2nd and 3rd quartile, we can interpret that 50% of the transactions have 2 to 6 products, only 25% of transactions have over 6 products purchased.</p>

<h4>Displaying frequently purchased products graph</h4>

<p>Analyzing the items that are having a purchase frequency of 10%</p>

<p><a href="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-03-a.jpg" target="_blank"><img alt="Market basket analysis image" src="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-03-a.jpg" /></a></p>

<p><a href="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-03.jpg" target="_blank"><img alt="Market basket analysis image" src="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-03.jpg" /></a></p>

<p>From the above graph, we can understand that these are the products having purchase frequency of 10% and above.</p>

<p><a href="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-04.jpg" target="_blank"><img alt="Market basket analysis image" src="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-04.jpg" /></a></p>

<p><a href="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-05.jpg" target="_blank"><img alt="Market basket analysis image" src="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-05.jpg" /></a></p>

<p>The above graph represents the top 20 frequently purchased products. This matrix will help in terms of product focus and layout. The top 5 products are Whole milk, Vegetables, Rolls/buns, Soda, and Yogurt.</p>

<h3>Market basket analysis using R</h3>

<p>In the rule setting section, we are determining the level of support and confidence we want for this basket analysis. So here, we are creating the basket with the Support level of 0.001, and the confidence level of 0.8. Here we are trying to build the baskets, which can significantly occur. This helps us to analyze the product&#39;s associate better.</p>

<p>Now let us interpret the rules output we have got for the given data set. Creating the rules to basket the products</p>

<p><a href="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-06.jpg" target="_blank"><img alt="Market basket analysis image" src="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-06.jpg" /></a></p>

<p>Displaying the result to analyze the insight</p>

<p><a href="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-07.jpg" target="_blank"><img alt="Market basket analysis image" src="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-07.jpg" /></a></p>

<p>With the given support and confidence parameter we have 410 rules in order to create the baskets. From the summary, we can understand that there are 29 rules for 3 products, 229 rules for 4 products, 140 rules for 5 products and 12 rules for 6 products.</p>

<p>Now let us inspect the first few rules to study them. Below listed are 20 rules for references.</p>

<p><a href="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-08.jpg" target="_blank"><img alt="Market basket analysis image" src="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-08.jpg" /></a></p>

<ul>
	<li>The rule 1 reads, the consumer who have bought rice and sugar more likely to purchase whole milk, with the support level of 0.0012 and the confidence level of 1. This occurred 12 products in this data set. Lift is simply the confidence over the support of whole milk. So Higher lift is always better for product association, the higher lift is what needs more focus and action on.</li>
	<li>The better understanding of lift, in the first line the lift score indicates that whole milk is likely to be purchased almost 4 times higher along with rice &amp; sugar compared with general purchase.</li>
</ul>

<p><a href="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-09.jpg" target="_blank"><img alt="Market basket analysis image" src="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-09.jpg" /></a></p>

<ul>
	<li>Likewise, in the rule, 13 Brown bread, and pip fruit and whipped or sour cream purchased consumer will 5 times likely to by Vegetables with the confidence level of 1.</li>
	<li>Rule 13 to 16 are the 4 rules with the highest lift.</li>
</ul>

<p>Now let us plot the 20 rules in a graph for better representation,</p>

<p><a href="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-10.jpg" target="_blank"><img alt="Market basket analysis image" src="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-10.jpg" /></a></p>

<p><a href="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-11.jpg" target="_blank"><img alt="Market basket analysis image" src="https://gecdesigns.com/img/blog/market-basket/market-basket-analysis-11.jpg" /></a></p>

<ul>
	<li>This 20 rules products association graph helps to identify the associated products visually.</li>
</ul>

<h3>Conclusion</h3>

<ul>
	<li>We have identified the product association using market basket analysis. The top 20 rules will help the seller to determine their marketing strategy to promote sales.</li>
	<li>What we have identified by market basket analysis can be used to planning store layouts.</li>
	<li>&ldquo;The concept of loss leader&rdquo; are the products most frequently purchased and relatively low-value items which will attract the consumer to walk into the store. Once the consumers are in, the market basket analysis will help to promote and boost sales.</li>
</ul>

<h3>Benefits of Market Basket Analysis</h3>

<ul>
	<li>Increase sales by providing best recommendations</li>
	<li>Most appropriate when several different products are being recommended to the same Buyer</li>
	<li>Improves user experience</li>
	<li>Bundles products that go together</li>
	<li>Helps to gain the efficiency of overall e-commerce store performance.</li>
	<li>Also useful in placing related products close-by in physical stores and displaying in the online store</li>
</ul>

What is Market Basket Analysis? How can market basket analysis help e-commerce business?

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