One of the reasons why Amazon became the dominant ecommerce platform in the market is because it focused its attention on analyzing both consumers’ browsing habits and consumers’ buying habits both of which are classified as behavioral analytics./p>
By evaluating consumers’ buying habits companies can identify optimal opportunities for both product promotions and bundles. A great example of bundles that are determined by behavioral analytics is on Amazon’s product pages below the initial product details. Usually the bundles include a few other items that others purchased with the same product. Purchasing the bundle gives a slight discount on all the products.
Buying habit data also enables customer segmentation using unsupervised machine learning methods such as clustering. Customer segmentation helps companies understand general buying habits of groups of people to better identify ways to cater to broad groups of people.