Do You Know How to Calculate Discounts? Do You Know Which Is the Better Buy?
I know what you will buy next summer
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Transcript of I know what you will buy next summer
KU Leuven:
Commercial Engineer
U Gent:
Master Marketing Analysis
Dexia/Belfius:
Data Miner
La Redoute: Marketing Analyst
IESEG: PhD Candidate
Who am I?
2005 2010 2011 2014
11/24/2015 BAQMaR Conference: Futures Festival 2
KU Leuven:
Commercial Engineer
U Gent:
Master Marketing Analysis
Dexia/Belfius:
Data Miner
La Redoute: Marketing Analyst
IESEG: PhD Candidate
Who am I?
2005 2010 2011 2014
11/24/2015 BAQMaR Conference: Futures Festival 2
Mass personalization society (Wind, 2001, JIM)
• Mass Consumption
• Personalized offering
• Mass personalization
BAQMaR Conference: Futures Festival 811/24/2015
Mass personalization society (Wind, 2001, JIM)
• Mass Consumption
• Personalized offering
• Mass personalization
BAQMaR Conference: Futures Festival 811/24/2015
Mass personalization society (Wind, 2001, JIM)
• Mass Consumption
• Personalized offering
• Mass personalization
BAQMaR Conference: Futures Festival 811/24/2015
Mass personalization society (Wind, 2001, JIM)
• Mass Consumption
• Personalized offering
• Mass personalization
BAQMaR Conference: Futures Festival 811/24/2015
Mass personalization society (Wind, 2001, JIM)
• Mass Consumption
• Personalized offering
• Mass personalization Personalized offering with the advantages of mass consumption.
BAQMaR Conference: Futures Festival 811/24/2015
Mass personalization society (Wind, 2001, JIM)
• Mass Consumption
• Personalized offering
• Mass personalization Personalized offering with the advantages of mass consumption.
People expect mass personalization. Globalization and e-commerce are factors making this shift possible.
BAQMaR Conference: Futures Festival 811/24/2015
Mass personalization society
• Paradox of choice (Tamaki 2005, LATimes; Girish 2007 JIM)
BAQMaR Conference: Futures Festival 911/24/2015
Mass personalization society
• Paradox of choice (Tamaki 2005, LATimes; Girish 2007 JIM)
+ Client are better informed• Globalization and internet
• Enormous choice possibilities
BAQMaR Conference: Futures Festival 911/24/2015
Mass personalization society
• Paradox of choice (Tamaki 2005, LATimes; Girish 2007 JIM)
+ Client are better informed• Globalization and internet
• Enormous choice possibilities
+ A customer could find a product/service satisfying his/her needs
BAQMaR Conference: Futures Festival 911/24/2015
Mass personalization society
• Paradox of choice (Tamaki 2005, LATimes; Girish 2007 JIM)
+ Client are better informed• Globalization and internet
• Enormous choice possibilities
+ A customer could find a product/service satisfying his/her needs
– Client is overwhelmed by the enormous choice• Hard to make an (optimal) purchase decision
BAQMaR Conference: Futures Festival 911/24/2015
Mass personalization society
• Paradox of choice (Tamaki 2005, LATimes; Girish 2007 JIM)
+ Client are better informed• Globalization and internet
• Enormous choice possibilities
+ A customer could find a product/service satisfying his/her needs
– Client is overwhelmed by the enormous choice• Hard to make an (optimal) purchase decision
→Recommendation SystemsBAQMaR Conference: Futures Festival 911/24/2015
Recommendation Systems: Examples
BAQMaR Conference: Futures Festival 10
In …. Travel sector
11/24/2015
Recommendation Systems: Examples
BAQMaR Conference: Futures Festival 11
In …. Media services
11/24/2015
Recommendation Systems: Examples
BAQMaR Conference: Futures Festival 12
In …. Social media
11/24/2015
Recommendation Systems?
• A definition [Ricci et al. 2011]
Recommender Systems are software tools and techniques providing personalized suggestions for items to be of use to a user. The suggestions, based a customer’s profile or his behavior, relate to various decision-making processes.
BAQMaR Conference: Futures Festival 1611/24/2015
Recommendation Systems?
• A data science description
A recommendation system is a customer centric view to recommend personalized sets of productsto clients using data science. This contrasts to the classical PTB models which are applied in product centric approaches.
BAQMaR Conference: Futures Festival 1711/24/2015
Identification MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
BAQMaR Conference: Futures Festival 2211/24/2015
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Identification
BAQMaR Conference: Futures Festival 2211/24/2015
Identification
Socio Demographics
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Identification
BAQMaR Conference: Futures Festival 2311/24/2015
Identification
Socio Demographics
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Identification
BAQMaR Conference: Futures Festival 2311/24/2015
Identification
Socio Demographics
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Identification
BAQMaR Conference: Futures Festival 2311/24/2015
Identification
Socio Demographics
Raincoat
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Identification
BAQMaR Conference: Futures Festival 2311/24/2015
Identification
Socio Demographics
Raincoat
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Identification
Men JacketRaincoat Blue
BAQMaR Conference: Futures Festival 2311/24/2015
Identification
Socio Demographics
Raincoat
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Identification
Men JacketRaincoat Blue
BAQMaR Conference: Futures Festival 2311/24/2015
Identification
Socio Demographics
Raincoat
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Identification
Men JacketRaincoat Blue
BAQMaR Conference: Futures Festival 2311/24/2015
Identification
Socio Demographics
Raincoat
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Identification
Men JacketRaincoat Red
Men JacketRaincoat Blue
BAQMaR Conference: Futures Festival 2311/24/2015
Identification
Socio Demographics
Raincoat
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Identification
Men JacketRaincoat Red
Men JacketRaincoat Blue
BAQMaR Conference: Futures Festival 2311/24/2015
Identification
Socio Demographics
Raincoat
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Identification
Men JacketRaincoat Red
Men JacketRaincoat Blue
Men JacketRaincoat Blue
BAQMaR Conference: Futures Festival 2311/24/2015
Identification
Socio Demographics
Raincoat
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Identification
Men JacketRaincoat Red
Men JacketRaincoat Blue
Men JacketRaincoat Blue
BAQMaR Conference: Futures Festival 2311/24/2015
Identification
Socio Demographics
Raincoat
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Identification
Men JacketRaincoat Red
Men JacketRaincoat Blue
Men JacketRaincoat Blue
BAQMaR Conference: Futures Festival 2311/24/2015
Identification
Identification
Socio Demographics
Raincoat
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Men JacketRaincoat Red
Men JacketRaincoat Blue
Men JacketRaincoat Blue
BAQMaR Conference: Futures Festival 24
Recommendation Zone
11/24/2015
Identification
Identification
Socio Demographics
Raincoat
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Men JacketRaincoat Red
Men JacketRaincoat Blue
Men JacketRaincoat Blue
Socio-demographics and segmentation
Demographic RecSys
BAQMaR Conference: Futures Festival 24
Recommendation Zone
11/24/2015
Identification
Identification
Socio Demographics
Raincoat
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Men JacketRaincoat Red
Men JacketRaincoat Blue
Men JacketRaincoat Blue
Socio-demographics and segmentation
Demographic RecSys
Social media Social RecSys
BAQMaR Conference: Futures Festival 24
Recommendation Zone
11/24/2015
Identification
Identification
Socio Demographics
Raincoat
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Men JacketRaincoat Red
Men JacketRaincoat Blue
Men JacketRaincoat Blue
Behavioral history and Look-a-likes
Collabotative RecSys
Socio-demographics and segmentation
Demographic RecSys
Social media Social RecSys
BAQMaR Conference: Futures Festival 24
Recommendation Zone
11/24/2015
Identification
Identification
Socio Demographics
Raincoat
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Men JacketRaincoat Red
Men JacketRaincoat Blue
Men JacketRaincoat Blue
Behavioral history and Look-a-likes
Collabotative RecSys
Socio-demographics and segmentation
Demographic RecSys
Social media Social RecSys
Product Information Content-based RecSys
BAQMaR Conference: Futures Festival 24
Recommendation Zone
11/24/2015
Identification
Identification
Socio Demographics
Raincoat
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Men JacketRaincoat Red
Men JacketRaincoat Blue
Men JacketRaincoat Blue
Behavioral history and Look-a-likes
Collabotative RecSys
Socio-demographics and segmentation
Demographic RecSys
Social media Social RecSys
Product Information Content-based RecSys
BAQMaR Conference: Futures Festival 24
Recommendation Zone
11/24/2015
Identification
Identification
Socio Demographics
Raincoat
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Men JacketRaincoat Red
Men JacketRaincoat Blue
Men JacketRaincoat Blue
Behavioral history and Look-a-likes
Collabotative RecSys
Socio-demographics and segmentation
Demographic RecSys
Social media Social RecSys
Product Information Content-based RecSys
Context (location weather, etc.)
Context-based RecSys
BAQMaR Conference: Futures Festival 24
Recommendation Zone
11/24/2015
Identification
Identification
Socio Demographics
Raincoat
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Men JacketRaincoat Red
Men JacketRaincoat Blue
Men JacketRaincoat Blue
Behavioral history and Look-a-likes
Collabotative RecSys
Socio-demographics and segmentation
Demographic RecSys
Social media Social RecSys
Product Information Content-based RecSys
Context (location weather, etc.)
Context-based RecSys
Real-time path analysis Knowledge-based RecSys
BAQMaR Conference: Futures Festival 24
Recommendation Zone
11/24/2015
Combining different algorithms and/or data sources
Hybrid RecSys
Identification
Identification
Socio Demographics
Raincoat
MenSportBlue
Men SuitsAccessory Red
Men SuitsVest Dark Blue
Men SuitsShoes Brown
Men JacketRaincoat Red
Men JacketRaincoat Blue
Men JacketRaincoat Blue
Behavioral history and Look-a-likes
Collabotative RecSys
Socio-demographics and segmentation
Demographic RecSys
Social media Social RecSys
Product Information Content-based RecSys
Context (location weather, etc.)
Context-based RecSys
Real-time path analysis Knowledge-based RecSys
BAQMaR Conference: Futures Festival 24
Recommendation Zone
11/24/2015
Applied to La Redoute
• E-mail personalization system: returning visit
BAQMaR Conference: Futures Festival 2511/24/2015
Applied to La Redoute
• E-mail personalization system: returning visit
• Let’s do the math: 7 million unique visitors a month 233 k visitors a day
150 k identified (e-mail)
250 k products, of which 50 k in recommendation scope
7.5 billion recommendation scores on average a day
BAQMaR Conference: Futures Festival 2511/24/2015
Applied to La Redoute
• E-mail personalization system: returning visit
• Let’s do the math: 7 million unique visitors a month 233 k visitors a day
150 k identified (e-mail)
250 k products, of which 50 k in recommendation scope
7.5 billion recommendation scores on average a day
• Possible extension to the site Real-time recommendations
BAQMaR Conference: Futures Festival 2511/24/2015
• Input Data
• Modeling techniques
Applied to La Redoute
BAQMaR Conference: Futures Festival 2611/24/2015
• Input Data
• Modeling techniques
Applied to La Redoute
BAQMaR Conference: Futures Festival 26
Socio-demographics and segmentation
Demographic RecSys
Behavioral history and Look-a-likes
Collabotative RecSys
Product Information Content-based RecSys
11/24/2015
• Input Data
• Modeling techniques
Applied to La Redoute
BAQMaR Conference: Futures Festival 26
Socio-demographics and segmentation
Demographic RecSys
Behavioral history and Look-a-likes
Collabotative RecSys
Product Information Content-based RecSys
Hierarchical Hybrid Model
Combination of scoresSVM, LR, DT, PM
Factorization Machine
Use all different data sources as input for Factorization Machine
11/24/2015
Applications
….
Pre-installed
….
Applied to La Redoute
27
(R)JDBC
Virtual Machine
CDH
To install
SQOOP
Added Value
• Customer
• Company
BAQMaR Conference: Futures Festival 29
> 75% of items watched on Netflix 50% of LinkedIn connections
11/24/2015
Thank you for your Attention
Contact:Stijn Geuens (0)3.20.545.892
IESEG School of Management [email protected]
3 Rue de la Digue fr.linkedin.com/pub/stijn-geuens/
F-59000 Lille stijn.geuens