Market Basket Analysis Drives Improved Product Marketing for a Large QSR

The Client

A privately held quick-service restaurant chain with over 500 locations across multiple states. The client operates 24×7 with multiple day parts, and menus associated with each daypart. They also provide various limited-time promotions for special menu items.

The Problem

The client needed a way to find correlations between different types of products in customer orders to analyze the effectiveness of a series of promotions. In addition, there were unknowns as to variances in preferences across market segments which resulted in “one size fits all” promotions.

The major market basket analysis issues included:

  • Understanding the menu trends and promotions – which menu items were purchased during or with various promotions, locations, or dayparts.

  • Understanding if correlation, if any, between sales trends, and promotions, and specific menu items.

  • Knowing the impact of various discount offerings such as offering an upgrade to a beverage or side item with various meals, and if other menu items sales were affected.

  • The solution allowed the client to gain insights into product and promotion correlation that helped drive better decisions.

The Solution

Smartbridge built a lightweight data mart that could accommodate the analysis requirements in their current environment without a dependency on any external tools or new infrastructure. This data mart allowed for item-to-item correlation analysis as well as menu item-to-modifier analysis by geographic location and time period.

The Result

The solution allowed the client to gain insights into product and promotion correlation that helped drive better decisions regarding marketing campaigns, discount offerings, and limited-time offers.

The new analysis capability has enhanced their ability to apply promotions to specific markets segments, dayparts, and geography. Future analysis can include more demographic and seasonal data to further identify trends and market fit.

There’s more to explore at Smartbridge.com!

Sign up to be notified when we publish articles, news, videos and more!

By signing up for emails from Smartbridge.com, you agree to our terms and privacy policy.