predicting retail kpis using magento & machine learning
DESCRIPTION
Presentation by Dhruv Boruah at Magento Live UK http://magentolive.com/uk/schedule/TRANSCRIPT
machine learningMagento&
About me
Dhruv Boruah
Co Founder, Reckless.io
Agenda
Agenda• Your KPIs• Session Goal• Interesting Magento Data• Magento Case• Tools/How?• Demo• Q&A
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)• …
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
Session Goal
How to predict customer behavior
using machine learning?
Interesting Magento Data
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)
3. Viewed product (visitor_id, customer_id, product_id, store)
4. Aggregated viewed products(view_num, price, name, store)
5. Quote tables
Magento Case
Case“Retailer A” trades in: Clothing/ Toys/Shoes/Home etc.
Goal: – Predict “checkout intent” of online customers– Deliver personalize promotion to prevent cart
abandonment
Tools
How?
How?
Listens for events Does delta sync Processes responses
MagentoExtension
ScalableInfrastructure
Slave Database NoSQL Google/Amazon
How?
YES/NO
• Slave Database• Flatten Magento
Tables• NoSql database
Data Warehouse
• Transaction History
• Merchandising• Operational• Marketing
Modeling • Preparation• Training• Predict
Predict
Training Model
Successful Checkouts
Created date/time Remote IP Base subtotal Items Customer is guest Category Location …
Training Model
Unsuccessful Checkouts
Demo
Questions/Comments?
[email protected]@dhruvboruah
https://github.com/reckless-io/predictionhttp://www.magentocommerce.com/magento-connect/reckless-realtime-cart-abandonment-detection-and-
prevention.html