Roman Zykov of Retail Rocket, “Big Data can be transformed into big money.”
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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
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Transcript of Roman Zykov of Retail Rocket, “Big Data can be transformed into big money.”
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
EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 2
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.
EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 3
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).
EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 5
«People are way more predictable than they think they are!»
Personalization
Time from click to purchase
EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 6
(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
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3
2
4 5
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t1 t2 t3 t4 t5
Personalization
A real example of purchase sequences:
EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 10
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?
EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 12
How much?
EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 13
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?
EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 14
Let’s keep in touch!
Questions?
• Email: [email protected]• Blog: KPIs.ru
EDAYS INTERNATIONAL E-COMMERCE CONFERENCE – MOSCOW, JUNE 4-5, 2015 15
