machine learning Magento

&

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

Magento Extension

Scalable Infrastructure

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?

dhruv@reckless.io @dhruvboruah

+44-786 838 2320

https://github.com/reckless-io/prediction

Thank you

Actions/Common Patterns Products in stock but not enabled in website Products viewed by customer but not in stock Product is selling like hot cake, do we switch off PPC? Products enabled and in stock, but not assigned to any

category/website Potentially detect SEO issues, checking url-key of products Featured products not being viewed by customers,

something wrong, not interesting? Products with potentially missing data: Images, price,

weight (free shipping depending on magento config), VAT 404 pages

Sales Forecast

Other tools

Other Tables

Technology Stack

Django/ Python

AngularJS, D3

PHP5

MySQL/ MongoDB

Google BigQuery/ Dremel

Yhathq/ R-project/ Google Prediction API/ Predictions.io

Possible use cases Inbound and outbound logistics optimization Fraud detection and prevention Pricing Supply and demand analysis and forecast Various scheduling and optimal resource allocation Merchandising (this item goes with this item) Recommendation (you may like ...) Context analysis Cross-Selling and Upselling - If people who buy X, do they buy Y? If so,

how do these things drive my marketing campaigns? Understanding Individual Customers - What does a path way of a singular

customer look like? How can I improve their web experience and retain them even longer?

Merchandising

Stock Report

Sales Report

Sell-Through Report

Coupon Usage Analysis

Refunds

Shipping Reports

Product Shipping Costs per department etc.

Order shipping costs

Guest order in the last 7 days, not previously placed a guest order

Search Keywords Customers Top Customers by brand Top customers by region Customers who bought X Guest Customers Cohort Analysis Customer created date Customer first order Customer order count