роман жуков Retail rocket

How Big Data can be transformed into big money

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE MOSCOW, JUNE 4-5, 2015

Roman Zykov, Chief Data Scientist at Retail Rocket

About Retail Rocket

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About Retail Rocket

+ Website personalization– 10+ personalization scenarios to make Amazon-like product recommendations.– 10% to 50% revenue growth (based on our A/B tests of our clients).– Easy to implement & use (pretty much like Google Analytics).  

+ Email personalization– Personalize your regular newsletters.– Fully automated trigger emails with personalized offers.– Average ecommerce conversion rate for our emails >10% (!).– Pay only for results (CPO or Revenue Share).– Free exit intent acquisition solution.

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Personalization

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 4

Personalization

Andreas Weigend

• Former Chief data scientist at Amazon.com.

• Works at leading universities in the US and China (including Stanford).

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«People are way more predictable than they think they are!»

Personalization

Time from click to purchase

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(25%-75%] (25%-75%] (25%-75%] (25%-75%] (25%-75%] (25%-75%] (25%-75%] (25%-75%]1294 5990 6191,5 18990 2930 3850 2135 4745228 968 855 3990 1030 1369 429 1296

Books DIY Electronics Furniture & Household

Health&beauty Kids MultiCategory Sports

0%10%20%30%40%50%60%70%80%90%

100%

Less 1 hour More 1 hour less 3 hours More 3 hours less 12 hours More 12 hour less 1 day

More 1 day less 2 days More 2 days less 4 days More 4 days

24 hours for personal recommendations

Personalization

Case-study: Personalization of the home page dostavka.ru

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 7

Home Page for a New User The same page for the user, who was interested in TV

A detailed description of the case-study: http://bit.ly/retail-rocket-dostavka

We have fully replicated the mechanics of the home page of Ozon.ru and got 8.5% of the revenue growth!

Personalization

Zero click shopping

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 8

Andreas Weigend: Next up is something he calls "zero-click shopping" — meaning that you'll buy stuff automatically, without going online to shop for it.

Personalization

The algorithm of the next purchase prediction

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 9

1

3

2

4 5

6

7

8

t1 t2 t3 t4 t5

Personalization

A real example of purchase sequences:

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Means for bathing children

Bottles and teats

Dishes for babies

Bibs

18 daysPacifiers

29 days

24 days

28 days

Personalization

Case-study: Triggered emails in Hoff.ru

EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 11

Scenario: Next Best Offer Conversion Rate: ~7%

A detailed description of the case-study: http://bit.ly/case-hoff-triggers

Do it yourself? How much?

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How much?

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Data scientist

Product manager

Minimum = 3 500 EUR * 1.5Optimal = 4700 EUR * 1.5

Hadoop

Minimum (3) = 300 EUROptimal (6) = 600 EUR

Total minimum cost to run = (5 250 + 300) * 6 months = 33 300 EUROptimal cost to run = Minimum + (4 500 * 1.5 + 600) * 6 = 77 400 EUR

How much it can cost?

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Let’s keep in touch!

Questions?

• Email: [email protected]• Blog: KPIs.ru

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