SKU Pearson Correlation Coefficient Analysis

[JAF90]

Hi all

I am trying to do a Pearson's correlation analysis to find out how likely my customers are to purchase another one of my products (SKUs) based on the overlap between them. For example, see the table below. You could argue customer C may well buy product 1000001254 as Customer A & B have it as well. In addition to volume, I have other columns but would like volume to be the key factor.

When I do the PCC calculation, it asks me for two numerical values. I have tried duplicating the same file but no luck to have 2 volume columns but its still not working properly (or dont know how I should say!). Thank you!

Customer	SKU	Volume
Customer A	1000006237	516
Customer A	1000006863	315
Customer A	1000001254	326
Customer A	1000001260	385
Customer A	1000001261	815
Customer B	1000001254	125
Customer B	1000001260	355
Customer B	1000001261	555
Customer C	1000001254	295
Customer C	1000001260	852
Customer C	1000006237	755

[CharlieS · Accepted solution]

Hi @JAF90 

I don't think the Pearson Correlation tool/analysis will provide what you're looking for. I would suggest checking out the Market Basket Affinity tool. 

https://help.alteryx.com/current/designer/mb-affinity-tool 

This does not take value into account, but does show the relationship of one SKU to others based on the presence in the same transaction. I've attached an example workflow that should this in action.

[JAF90]

Thank you Charlie! Unfortunately my version of Alteryx does not support that tool... do you have any alternative solutions in mind? Appreciate it.

[CharlieS]

Happy to help.

Let's talk about your installation then. The predictive tools are free and included with your Designer license.

Do you have the Predictive tools installed?

What version of Designer are you running?

[JAF90]

My version is 2019.4.8.22007. The tools under the Predictive tab are "Deploy" and "Score". I have some others Like Pearson and Spearman as part of the Data Investigation tools as well.

[CharlieS]

Hmmm, that's odd that you have some but not all. Do you have the Predictive Grouping tools? Are you able to add it to your toolbar?

If not, check out the RInstaller_2019.4.8.22007.exe from the download portal to install all the Predictive Tools. 

[JAF90]

Hi Charlie - I decided to install the predictive tools instead and your solution works! Thank you very much!