purchase prediction by statistical analysis (統計技術を用いた商品購買予測)

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Takashi Umeda (梅田卓志) @umekoumeda Oct. 20 th , 2012 Purchase prediction by statistical analysis

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Takashi Umeda (梅田卓志)

@umekoumeda

Oct. 20th , 2012

Purchase prediction

by statistical analysis

楽天技術研究所 Rakuten Institute of Technology

Value Proposition

Third Reality

Vision Tokyo & NY

& Paris

Strategic R&D organization for Rakuten

Biography

3

• Takashi Umeda

• Twitter : @umekoumeda

Profile

Work

Purchase prediction >>> Users’ Benefits

Prediction of purchase interval

Seasonality forecasting

Preference prediction

Biography

4

• Takashi Umeda

• Twitter : @umekoumeda

Profile

Work

Purchase prediction >>> Users’ Benefits

Prediction of purchase interval

Seasonality forecasting

Preference prediction

Objective

• Predict the users’ purchase interval

• Focus on non-durable goods

5

Example of application

30 days 30 days 30 days

Past Future Past Future

Buy Buy Buy Buy

Example of application

30 days 30 days 30 days

Past Future Past Future

Buy Buy Buy Buy Remind!

We can remind users

just before next purchase

30 days

そろそろ、買い時では?

Users’ benefits

Prevent users from forgetting to purchase

Empty

I forgot to

purchase!

It’s time to

purchase!

Few

NG OK

Notification

How can we predict

purchase interval ?

Data set

Purchase history in rice category

Target users :

Users purchasing over 4 times in one year

Pick Up

Example of users with only fixed intervals

BUY

30 days

BUY BUY

31 days 29 days

BUY

Past Future

BUY

30 days

BUY BUY

31 days 29 days

BUY

Past Future

All purchase intervals are fixed. It’s about 30 days.

We call those users as “Users with only fixed intervals”

Example of users with only fixed intervals

Coverage of users with only fixed intervals

Target

Users with only fixed intervals

(Predictable users)

About 11%

• Target : Users purchasing over 4 times in 1 year

Too low coverage !

Not practical !

Example of users with a few outlier intervals

BUY

31days 60 days 29 days

BUY BUY BUY

30 days

BUY

BUY

31days 60 days 29 days

BUY BUY BUY

30 days

BUY

Most of purchase intervals are fixed.

It’s about 30 days.

Example of users with a few outlier intervals

BUY

31days 60 days 29 days

BUY BUY BUY

30 days

BUY

A few intervals are outlier intervals

Example of users with a few outlier intervals

BUY

31days 60 days 29 days

BUY BUY BUY

30 days

• There are a lots of users with

many fixed and a few outlier intervals

• We call those users as

“Users with a few outlier intervals”

BUY

Example of users with a few outlier intervals

BUY

31days 60 days 29 days

BUY BUY BUY

30 days

BUY

Cause for the outlier interval

Why outlier intervals happened

?

31days 60 days 29 days 30 days

Cause for the outlier interval

5kg 10kg 5kg 5kg 5kg

• If consumer purchased more, interval had been longer

• This type of users account for 22 %

Coverage of users with a few outlier intervals

Predictable users

47%

Users with a few outlier intervals

36%

• Target : Users purchasing over 4 times in 1 year

Target

Users with only fixed intervals

11%

Trends in any other categories

Predictable users exist in not only rice category

but also any other categories.

Ratio of predictable users

33.4 % 55.3 % 46.1 % 43.2 %

Items which we should show

57%

In the reminding system, it’s better to show

the item which has been purchased before.

Users repeatedly purchase

the same item at the same shop

Users repeatedly purchase

different items - Items sold at the same shop (10%)

- Same priced items (14%)

43%

Items which we should show

21%

In the reminding system, it’s better to show

various kinds of items.

Users repeatedly purchase

the same item at the same shop

Users repeatedly purchase

different items - Items sold at the same shop (32%)

- Same priced items (31%)

79%

Summary

There are many predictable users 47% in the rice category

We can remind users at the right moment !

It makes users happy ! Prevent users from forgetting to purchase item

Message

There are many

Fixed interval users

It make users happy !

• In rice category,

those users account for 47%.

• Many categories have same trends

By using detected fixed interval,

We can remind users

just before next purchase

Users can avoid from forgetting to

purchase regular buying items

Purchase Prediction

Users’ Benefits

Message

There are many

Fixed interval users

It make users happy !

• In rice category,

those users account for 47%.

• Many categories have same trends

By using detected fixed interval,

We can remind users

just before next purchase

Users can avoid from forgetting to

purchase regular buying items

Purchase Prediction

Users’ Benefits

If you come up with any idea,

feel free to tweet via twitter

@umekoumeda