Up- and Cross-Selling
Every experienced merchant knows that it is easier to sell further goods to an existing customer rather than to acquire a new customer. The exploitation of this fact today is even more important than ever, because today it is often economically counterproductive to acquire new customers utilizing classic marketing actions.
This type of “more” and “different” selling is called up- and cross-Selling. Data Mining delivers the right tools to serve this task effectively, target-oriented, and efficient.
Up-selling represents selling of high-order goods or a larger number of the same goods (e.g. in car sales: the sale of a more powerful engine or of more accessories). In contrast, cross-selling means selling of other goods (e.g. the sale of a football journal subscription to the buyer of the car).
Up- and cross-selling addresses the following central question:
Which offering at which time I must offer to which customer to make her most likely to buy?
In order to answer this question, Data Mining methods are quite helpful.
Typical methods are first of all classification methods like decision trees or multivariate methods like regression analysis or Sparse Grids as well as methods of association and sequence analysis. Thus, the history of the customer or of other customers is used to learn when which product should be offered.
The resulting rules (in rule-based approaches) are applied for up- and cross-selling e.g. in a call centre by offering an additional product (applying the Data Mining rules) to a customer who has already bought special products.
A further application area are online stores in the internet. A customer selects a product in the online store and receives recommendations for other products (recommendation engine).
prudsys offers all the tools required to generate the up- and cross-selling recommendations and to apply them at the POS. In particular, our tools contain the world’s fastest and most powerful Data Mining methods in many areas.
The calculation which customer to offer which product is done by the  prudsys DISCOVERER and the prudsys BASKET ANALYZER. The results are afterwards directly written into the database or alternatively exported into the standard PMML format.
These models, in turn, can be used by other prudsys applications. For example, the prudsys PREMINER automatically and regularly applies the models and writes the results into operative systems. Or the application is performed in real-time by the Data Mining library XELOPES.
Finally, for special applications prudsys also offers integrated solutions. For example, the prudsys RECOMMENDATION ENGINE combines the calculation of complex rules based on association and sequence analysis with their direct integration in the web shop. The user can sit back and relax while the system is running fully-automatic and always finds the best rules.
For this reason, prudsys is the right partner to exploit the up- and cross-selling potential of your customers, however your communication channels are. We offer the methods, the software, and the experience that help you always to recommend your customers the right products at the right time.
Products:
prudsys PREMINER
prudsys DISCOVERER
prudsys BASKET ANALYZER
prudsys RECOMMENDATION ENGINE
XELOPES Bibliothek
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