Understand Customer Purchase Behavior and Boost Sales with Market Basket Analysis

Understand Customer Purchase Behavior and Boost Sales with Market Basket Analysis

Delivering a personalized purchase experience is the key differentiator for businesses to increase sales and brand loyalty. Market basket analysis, also called affinity or association analysis, is a data mining technique that helps discover significant patterns and relationships exhibited by individuals while making a purchase. 

By identifying the items that occur together,

  • Businesses can provide personalized product recommendations to customers during purchase.
  • Retailers can optimize product placements by placing or displaying related items closely and
         having adequate stock levels.
  • Marketers can curate focused campaigns and product bundle deals that resonate with customer preferences.

    • Data Requirements

    To conduct a market basket analysis, you'll need a transactional dataset that includes the item name, bill number (or order ID), quantity, and date and time of the transaction.

    We are using a sample e-commerce store data saved as Orders for illustration. Each row in the Orders data table denotes a transaction.

    Preparing the data for analysis

    To conduct the market basket analysis, we need to extract the following data from the base table (Orders) using SQL queries.
    • A query table that contains all possible pairs of combinations that could occur together.
    • A query table to get the number of transactions for combinations that have appeared together or combinations that has been purchased.
    • As a final step, merge the all possible combinations query table and the number of transactions query table.

    Generating all Possible Pairs of Combinations

    The first step in the data preparation process is to generate all distinct pairs of items that could appear on the transaction. To get that, 
    1. Perform a self-join operation on the Items Name column of the base table, Orders. The self-join operation compares each row (transaction) with every other row (transaction).
    2. Use the condition Greater than (>) to ensure that each pair of items is considered only once and avoid duplicates where the same pair appears in reverse order, like (Lavender Candle, British Rose) or (British Rose, Lavender Candle) or (Lavender Candle, Lavender Candle) 
      SELECT
          "Orders" . "Item Name" "Item",
          "Orders copy". "Item Name" "Item Copy"
      FROM ( SELECT `orders` .`Item Name` "Item Name"
                    FROM  "Orders" 
                     GROUP BY  1 
      ) AS  "Orders"
      JOIN(SELECT `orders`.`Item Name` "Item Name"
      FROM  "Orders" 
      GROUP BY  1 
      ) AS  "Orders copy" ON "Orders" . "Item Name"  > "Orders copy" . "Item Name"
    Finally, save the query table with a suitable name. We are saving it as All Items Combinations.

    Distinct Count for Existing Combination

    The second step in the data preparation process is to get the distinct count for the pairs of items that appear together in transactions.
    1. Perform a self-join operation on the Items Name column of the base table, Bill Items. The self-join operation compares each row (transaction) with every other row (transaction).
    2. Use the count_distinct function on the Bill Number column to get the total number of times a combination has occurred together.
      3. SELECT
      "Orders" . "Item Name" "Item",
      "Orders Copy" . "Items Name" "Item Combo",
      count_distinct ("Orders Copy" . "Bill Number") "Number of Transactions"
      FROM  "Orders"
      JOIN( SELECT
      `Orders`.`Item Name` "Items name",
      `Orders`.`Bill Number` "BillNo"
      FROM  "Orders" 
      ) AS  "Orders Copy"  ON  "Orders" . "Bill Number"  = "Orders Copy".  "Bill Number"
      AND "Orders" . "Item Name"  > "Orders Copy" ." Items Name"  
      GROUP BY 1,
        2 
    Finally, save the query table with a suitable name. We are saving it as Count for Existing Combinations.


    Merge Tables using Left Join 

    The final step in the data preparation process is to join the All Combinations table and the Count for Existing Combinations table. Use the Left Join operation on the All Items Combination table, and use the if_null function for combinations that have not occurred or been bought together.

    SELECT
    "All Items Combination" . "Item" "Item",
    "All Items Combination" . "Item Copy" "Item Copy",
    if_null("Count for Existing Transactions" . "Number of Transactions", 0) as "Number of Transactions"
    FROM  "All Items Combination"
    LEFT JOIN "Count for Existing Transactions" ON "All Items Combination" . "Item"  = "Count for Existing Transactions".  "Item"
    AND "All Items Combination" . "Item Copy"  = "Count for Existing Transactions" . "Item Combo" 

    By doing this, we will have a query table showing the count of pairs of items that occur together, with 0 assigned to combinations that do not occur together.


    Data Visualization - Creating a Heat map

    1. Access the Total Transactions for all Combinations query table, click the Create icon on the side navigation panel.
    2. Choose New Chart view from the drop-down menu.
    3. Drag and drop the column as shown below
      1. X - axis:  Item
      2. Y - axis - Item Copy
      3. Color - Number of transactions

    4. Click Generate Graph.
    5. The heat map for pairs of combinations will be ready!

    Inference

    From the above graph, we infer that combinations like {Silver Antique Vase, Chocolate Box} and {Silver Antique Vase, Rainbow Umbrella} {Rainbow Umbrella, Chocolate box} {Silver Antique Vase, Porcelain Rose} have a higher purchase frequency.

    Items with a higher purchase frequency can be displayed on the home page of the e-commerce site as Best Sellers. They can also be shown as recommendations to cross-sell products if the cart has any one of the related items that is frequently bought. 

    Market Basket Analysis for 3 - item Combination

    You can create a query table similar to the above query table to find the three items that occur together in transactions and create a pivot table for visualization. Refer to the sample workspace for queries.




        • Sticky Posts

        • Tip of the Week - Spot Risky Sales with Conditional Formatting

          In Zoho Analytics, small tweaks can lead to big insights. One such feature is Conditional formatting based on other columns, your key to instantly spotting where sales success is overshadowed by product returns. Our tip this week shows you how to apply

          • Recent Topics

          • What's New - February 2026 | Zoho Backstage

            February 2026 brings a major new addition and a collection of enhancements across Zoho Backstage. We thought about writing a long introduction, but the updates in this release make a strong case on their own. So we’ll skip the buildup and dive straight

          • Attaching files to emails within CRM Deals.

            Hello, We have recently started using the extension "Workdrive for CRM" (Related List) to view/store our documents for each Deal, instead of using Attachments. Overall it feels like a better way to go but the user experience is not so great when it comes

          • Anyone worked out how to export or screengrab a full heatmap?

            I'd love to be able to include a copy of a heatmap in a report but can't work out how to grab the whole thing as there doesn't appear to be an export function? Thanks in advance.

          • Establishing Relationships among contacts/leads with Reciprocal

            Is there any way to create a relationship between contacts and leads and be able to go into just one of the files and have it reciprocate the entry in the other file? For example, if I have two people say John and Jane Smith who are husband and wife.

          • Placeholder for Agent Signature in Email Templates

            Dear Zoho Team, I hope this message finds you well. We currently face a limitation when designing email templates in Zoho Desk. While we can create email templates and include a footer at the end, the agent signature is always appended by default at the

          • Custom View and Custom Fields on Zoho Books

            Hi, I have some custom fields on Estimates and Invoices. I also use Custom Views so I can have a lot of information at a glance. I want to include my custom fields as columns in my custom views of estimates / invoice, but it looks like is not possible.

          • %PaymentLink%

            Does not work. Software creates a BAD link. ....and yes payment options are turned on. Link on the invoice pdf once opened will work but this template is a joke.

          • Syncing calendar with Google Calendar doesn't work when events are sent to auto repeat

            Hi... The ZOHO CRM -- GOOGLE CALENDAR sync is broken. If I create a single event on either side, sync works, but if I create an event with auto repeat on either side it doesn't work. Furthermore, events created before the sync don't show up in the calendar.

          • Allow Global Admin to access/edit all forms without changing owners

            Hi there, Please consider adding a feature where the Global Admin of the account an automatically access/edit any form in the Company Account. I'm the Global Admin on our Zoho One plan, and we have multiple users that use/create forms. But for me to access

          • Can Zoho Marketing Automation send OTP codes via WhatsApp during user registration?

            The flow I would like to implement is: A user signs up in the mobile app and enters their phone number. The system generates a one-time verification code (OTP). The OTP is sent to the user via WhatsApp message. The user enters the code in the app to confirm

          • Where to show Customization Field ?

            Dear Sir, I have made some New Field in Item Field Customisation. Now I don't require that field in Estimate, Sales Orders etc. I just wants that field in Sales Invoice to Show/Hide... Is that possible ?

          • What's New in Zoho Analytics - February 2026

            Hello Users! We're back with another round of updates for Zoho Analytics. This month's release focuses on giving you greater flexibility in how you visualize, manage, and act on your data - with new features like custom visualizations, remote MCP server,

          • Zoho Books (and other Finance Suite Apps) - Clickable Item Name on Invoices and Reports

            Hi Zoho Books team, It would be really helpful if the Item Name on Reports were clicable to take me to the item. The same on Invoices, often I am looking at an invoice and I want to look at the deails of a product. A link here would be helpful to jump

          • ZOHO Reports are taking longer time to get refresh

            Hi Team, Since last few days, I'm facing issues in getting updated reports. For eg: right after making an expense entry or even posting a journal, it is taking longer then expected for the updated reports. Refer below: "You are viewing the report that

          • Display actual mileage on an invoice

            My users are creating expenses in Zoho expense. For example, they expense 10 miles and get paid 7 dollars (10 miles * IRS rate of .70). If I look at the expenses in Zoho Books, it does show them at 10 miles at .70 cent When I add these expense to an invoice

          • Can't change form's original name in URL

            Hi all, I have been duplicating + editing forms for jobs regarding the same department to maintain formatting + styling. The issue I've not run into is because I've duplicated it from an existing form, the URL doesn't seem to want to update with the new

          • Can you create relationships BETWEEN contacts within the same module

            I am setting up my CRM, and I want to have a way to connect contacts within the same module.  Is there a way to do this?  If not - how do I decide how to split up contacts to make connections?  What are best practices for this? We have clients who need

          • Function and workflow to create customer payment and send receipt

             I am attempting to set up a workflow/custom function for the automatic creation of a customer payment and sending the email receipt, but am receiving the error "Improper Statement Error might be due to missing ';' at end of the line or incomplete expression" I've been over everything several times and cannot see where the error is (code is copied into the attached document).  I haven't used custom functions before with Deluge, so it's very likely something very simple, or I've completely mucked

          • Disable Sign Up option in Zoho Creator Portal and show only Sign In page

            Is it possible to disable the Sign Up option in a Zoho Creator portal? The requirement is to show only the Sign In page and completely remove or hide the Sign Up page, so users cannot create accounts directly from the portal login page. Is there any setting

          • Restrict Payment Methods

            Allow us to restrict certain payment methods specific for each customer.

          • How to install Widget in inventory module

            Hi， I am trying to install a app into Sales Order Module related list, however there is no button allow me to do that. May I ask how to install widget to inventory module related list?

          • Can I view the KB in the same way as a customer logged in as my Agent?

            Sorry if this seems a mad question.  I have some Articles that I want to be seen by my Agents and the status of these is set to Agents only.  We also have some that are set to Public. When I sign in with my private email address (as a customer) I can

          • What’s New in Zoho Inventory — Latest Features, Integrations & Updates | December 2025

            Zoho Inventory has evolved significantly over the past months, bringing you smarter, faster, and more connected tools to streamline your operations. Whether you’re managing multichannel sales, complex fulfillment workflows, or fast-moving stock, our newest

          • Which user's capacity is used for Shared Mailbox storage?

            We use shared mailboxes at our company, and their size is increasing daily. Which user(s)'s total mailbox limit is being used up by this space?

          • Evernote (ENEX) import limitations

            I have been with Evernote since 2010, but the latest price increase is ridiculous. I am currently testing Zoho Notebook as a replacement. I am impressed so far - if it were not for critical need to import legacy Evernote notes, I would 100% migrate to

          • Can I create a CODE 128 custom field for my items in Zoho Inventory and then use it for generating Sales Orders?

            Can anyone helps me, I don't want to use the SKU code for scanning my products.  ​Because all my products have a CODE-128 label attached.

          • Prevent duplicate with custom fields?

            I was wondering something about custom field/custom modules in Zoho Desk. For some reason you can make a custom field mandatory but not unique? For example, if I create a custom module to manage equipment and renewal and make a field serial number no

          • Zoho Books' 2025 Wrapped

            Before we turn the page to a new year, it’s time to revisit the updates that made financial management simpler and more intuitive. This annual roundup brings together the most impactful features and enhancements we delivered in 2025, offering a clear

          • Multiple Vendor SKUs

            One of the big concerns we have with ZOHO Inventory is lack of Vendor Skus like many other inventory software packages offer. Being able to have multiple vendor skus for the same product would be HUGE! It would populate the appropriate vendor Sku for

          • Create Invoice automated with Package

            Does anyone knows how to create an invoice from a SO when we have created the package? We do these manually. and validate that the product packed is the product invoiced (if the order is partially packed) Regards, JS

          • Unable to integrate Zoho Projects and Zoho Workdrive

            I'm a Zoho One subscriber. When I go to Zoho Projects > Settings > Marketplace > Zoho Apps I do not see an option for Zoho Workdrive but I do see one for Zoho Docs that does nothing. How do I get the option to integrate Zoho WorkDrive and Zoho Proje

          • Disable payment thank-you emails

            Hello, can someone please tell me how to disable sending of the "Payment Thank-You" emails? 

          • How to backdate record payment for the invoice

            I would like to record a payment which happened 2 days ago, but I am not able to select any date later than today. I backdated the invoice, too, but it doesn't change anything

          • Help with deluge script

            Hi Community, this is my first Deluge script. I've pieced it together from reading various articles I want to use it in a workflow to 1 Convert a lead to a contact 2. Create a record in a custom module Below is what I have got so far but it does not fire

          • Marketer's Space: Why email authentication matters in Zoho Campaigns

            Welcome back to another post in Marketer's Space! If you've recently started using Zoho Campaigns, you've probably come across terms like SPF and DKIM. You may have also noticed emails that show "via zcsend.net" in Gmail when testing or sending campaigns.

          • Feature Request: "Send Invitation" Toggle for Events

            I am writing to request a critical "Quality of Life" update for the Activities module. Currently, adding people to the Participants field in an Event triggers an automatic email invitation/acceptance tracking with no way to opt-out. For general events

          • Edit email address that appears on invoice

            Hi How do I change the email address that appears on invoices, it is showing the email address that i used to sign up to zoho with but I want to change it to another email address that we use for accounts. also is there a way to edit the position of a

          • Introducing Zoho Sprints 3.0

            Zoho Sprints is consistently evolving in steady increments. The introduction of the latest version, with its enterprise level solutions, brings to you advanced capabilities that propel your agile efforts in the right direction. Here's a quick glimpse

          • Google Fonts Integration in Pagesense Popup Editor

            Hello Zoho Pagesense Team, We hope you're doing well. We’d like to submit a feature request to enhance Zoho Pagesense’s popup editor with Google Fonts support. Current Limitation: Currently, Pagesense offers a limited set of default fonts. Google Fonts

          • Clone Entire Zoho Boooks Organization, including all transactions for testing & training

            Can Zoho Books support help with direct cloning of entire Zoho Books & Inventory Organization? including all transactions, just like a copy & paste or disk cloning. Is this possible?

          • Next Page