Boost Your Sales Mastering Product Affinity Analysis [Video]

Existing customers are far more likely (5-10x) to upgrade or purchase additional, complementary products than first-time customers.

While this seems like common sense, I’ve seen too many distributors let these hidden opportunities slip by, relying on guesswork rather than data—and model-driven recommendations.

In our last webinar (Overcoming Growth Headwinds: Advanced Strategies for Revenue Optimization in Distribution), Enrico Sieni and I gave examples of leveraging foundational and more advanced analytics to drive organic growth, increased customer lifetime values, and operating profits.

Product Affinity Analysis is a foundational Revenue Growth Analytics capability that’s pretty basic in its concept but can drive substantial value to the commercial org and the company’s bottom line.

Far from being limited to B2C retail or e-commerce, Product Affinity Analysis is a proven yet underutilized approach that taps into the transactional patterns buried in your data—patterns that can help you make every sales interaction more meaningful and profitable.

At its core, Product Affinity Analysis uncovers the underlying relationships between products frequently purchased together by customers (think of Market Basket Analysis in Retail).

Combine transactional data with firmographic and behavioral insights—like a customer’s industry, size, information about a customer’s tech stack, payment behavior, etc. —and gain a roadmap for cross-sell and upsell strategies that deliver greater customer lifetime value.

Instead of broad, hit-or-miss campaigns, you can direct targeted, timely offers at the right customer segments, significantly improving your odds of conversion.

Practical Examples to Drive Profitability:

Cross-Sell Opportunity: If customers who buy Product ABC are 5x more likely to purchase Product XYZ, then:

+ Identify those who own ABC but not XYZ.
+ Segment them by similar attributes—industry, product usage patterns, or timing.
+ Run a focused campaign that clearly articulates how XYZ complements ABC’s functionality.

Upsell Opportunity: If users of Product ABC are significantly more inclined to upgrade to a premium version (ABCD) within 6–12 months:
+ Pinpoint those similar customers in the target time window who haven’t upgraded yet.
+ Highlight premium benefits tailored to their existing needs and show how moving to the upgraded product is a natural evolution of their business.

For distributors, where margins can be razor-thin and sales velocity critical, this is a game-changer. It’s a shift from “hopeful selling” to strategic, data-driven selling.

Want More Insight?

We’ve published a comprehensive whitepaper that explores Product Affinity Analysis and other advanced analytics approaches to RGM in the Distribution industry. Learn how to drive CLVs, optimize pricing, and leverage analytical tools to help your organization succeed.

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