YipitData Use Case
How to Maximize Profitability with Product Bundling
Background
Attachment Lag Analysis is a data-driven analytical approach that examines the time interval between a customer's initial purchase and their subsequent purchase of related or complementary products. By analyzing attachment lags, companies can gain insights into which products are commonly purchased together and identify cross-selling opportunities or inform effective product bundling strategies.
Approach
Product bundling in the appliances industry is popular for a variety of reasons including convenience, cost savings and coordinated design. Recent trends show that Whirlpool, a long-standing player in the appliance market, has seen a significant shift in consumer spending towards competitors like GE, LG, and Samsung.
Whirlpool Customer Wallet Share Retention
United States, Online and B&M Sales at Home Depot, Lowe’s, Costco, and Best Buy, Jan 2020 - Dec 2022
Using receipt data, YipitData analyzed the purchasing patterns of consumers who bought Whirlpool refrigerators and subsequently purchased dishwashers. By understanding the appliance bundle preferences of these customers, YipitData aimed to uncover strategies that could improve Whirlpool’s brand loyalty.
Analysis
Of 527 households, the brand of dishwasher that was purchased after buying a Whirlpool refrigerators varied dramatically. The wide variation in the chosen dishwasher brands, indicated a lack of strong brand loyalty.
Dishwasher Brand Capture of Whirlpool Refrigerator Customers
United States, B&M Sales at Best Buy, Lowe’s, Home Depot, and Costco, Jan 2020 - Dec 2022
Moreover, the analysis identified an emerging trend—increasing numbers of consumers are purchasing dishwashers on the same day as their refrigerator, presenting a valuable opportunity for bundle offers and cross-sell merchandising strategies.
Attachment Lag Analysis for Dishwasher Purchase
United States, B&M Sales at Home Depot, Lowe’s, Costco, and Best Buy, Jan 2020 - Dec 2022
Sources: Email Receipt, In-Store Receipt, and Web-Scraping
Outcome
While Whirlpool has experienced a decline in brand loyalty, implementing bundle offers and cross-sell merchandising strategies could allow the brand an opportunity to capitalize on the growing trend of same-day appliance purchases. In turn, driving consumers towards Whirlpool's products and enhancing brand loyalty.
Interested in using attachment lag analysis to grow your brand?