predicting retail kpis using magento & machine learning

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Presentation by Dhruv Boruah at Magento Live UK http://magentolive.com/uk/schedule/

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Page 1: Predicting Retail KPIs using Magento & Machine Learning
Page 2: Predicting Retail KPIs using Magento & Machine Learning

machine learningMagento&

Page 3: Predicting Retail KPIs using Magento & Machine Learning

About me

Page 4: Predicting Retail KPIs using Magento & Machine Learning

Dhruv Boruah

Co Founder, Reckless.io

Page 5: Predicting Retail KPIs using Magento & Machine Learning

Agenda

Page 6: Predicting Retail KPIs using Magento & Machine Learning

Agenda• Your KPIs• Session Goal• Interesting Magento Data• Magento Case• Tools/How?• Demo• Q&A

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Your KPIs• Are you asking the right questions?• How much do you know about your customers?

AOV/LTV/GPM Sales/Returns/Shipping Churn Rate Abandonment Rate …

External Factors• Weather/ Forex/

Holiday/Newsletters• Census (birth/death/age)• …

Page 8: Predicting Retail KPIs using Magento & Machine Learning

Machine Learning

A branch of artificial intelligence, concerns the construction and study of systems that

can learn from data.

Source: http://en.wikipedia.org/wiki/Machine_learning

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Session Goal

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How to predict customer behavior

using machine learning?

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Interesting Magento Data

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1. log_visitor_online (visitor_id, type, ip, customer_id, last_url )

2. log_visitor (visitor_id, session_id, first & last visit, last_url, store)

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3. Viewed product (visitor_id, customer_id, product_id, store)

4. Aggregated viewed products(view_num, price, name, store)

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5. Quote tables

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Magento Case

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Case“Retailer A” trades in: Clothing/ Toys/Shoes/Home etc.

Goal: – Predict “checkout intent” of online customers– Deliver personalize promotion to prevent cart

abandonment

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Tools

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How?

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How?

Listens for events Does delta sync Processes responses

MagentoExtension

ScalableInfrastructure

Slave Database NoSQL Google/Amazon

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How?

YES/NO

• Slave Database• Flatten Magento

Tables• NoSql database

Data Warehouse

• Transaction History

• Merchandising• Operational• Marketing

Modeling • Preparation• Training• Predict

Predict

Page 22: Predicting Retail KPIs using Magento & Machine Learning

Training Model

Successful Checkouts

Created date/time Remote IP Base subtotal Items Customer is guest Category Location …

Training Model

Unsuccessful Checkouts

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Demo