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Machine Learning in
Magento 2
WHAT
Customer retention
 Recommendations during product choosing
 Cross-sell during purchasing process
 Realtime personal discounts
 Personalized search results
Customer returns
 Predict following sales and offer the customer
 Personalized discounts and hot-sales e-mails
 Work with abandoned baskets
 After-sale support by e-mail of phone
Customer behavior analytics
 Customers segmentation
 Automatic clusterization
 Searching for hidden behavior patterns
 Signalizing about unusual customer activities
Customer behavior prediction
 Predict customer preferences
 Predict unknown data about customer
 Predict future purchases
 Predict lost customers
 Predict anything for what you can find correlations
The Main goal:
personalization
Convert visitors to HAPPY buyers
1. Analyze visitor
2. Predict visitor needs
3. Determine visitor behavior pattern
4. Inject into salesflow the most effective additional points of influence personalized
for the visitor
5. Suggest exactly what the visitor wants
6. Make the visitor happy buyer
7. Thank him for the purchasing and suggest more
HOW
Magento 2.0
instance
Data Sources
Events flow
Generate events
ES
Persist events to
datastore
321 …
Event consumers
Machine Learning
standalone service
Data required for
prediction models
Consumer asks by SOAP
for a prediction results
Create sub-events
Calls to API in order to ML
decisions
Communicates
with visitors
Realtime calls to ML service API
to obtain predicted data
Hadoop Spark ML
Batch and realtime long-term history analysis,
heavy reporting
Customer activities, internal data changes
Data Flow
Data sources
1. Products catalog, inventory
2. Pages visit logs
3. Purchases, abandoned baskets
4. Ratings, reviews
5. External data sources like Twitter, Amazon, public datasets, etc.
6. Timeseries with
• history of changes of product’s prices
• customers activity log
Events FLOW
1. Common event bus using RabbitMQ for small customers and Apache Kafka for a
large
2. It’s a horizontal highly scalable solution
3. All data inside events should get to the persistent datastore according to
consumers rules
4. After that consumers may trigger sub-event for the ML algorithms that depends
on changed data
5. If ML algorithm should call some API method in Magento (for example add
customer to a new segment), it would publish event for the appropriate consumer
6. On each step we have the opportunity to integrate any external systems into our
process flow through the event bus
Persistent datastore
1. Datastore should have three levels
I. In-memory datastore to cache operational data for realtime queries
II. Operational datastore to persists all appropriate data for machine learning algorithms
III. Analytical datastore for all historical data which will be used for a heavy reporting and
deep ML analysis
2. Due to the probabilistic nature of the ML algorithm, in datastore architecture we
can sacrifice Consistency of CAP theory and guarantee Availability and Partition
tolerance
3. On the first step of discussing I propose to use Redis(VoltDB, Aerospike,
Tarantool), ElasticSearch(Solr, MySQL, HBase) and Hadoop
Machine learning service
1. Will be implemented as standalone service
2. Binary/SOAP/REST protocols using HTTP/TCP transport layer
3. Direct read-only access to all data sources
4. ACL checks should be implemented on clients
5. Horizontally scalable nothing-shared architecture
6. Calculated models will be synced using binary protocol without master-node
(Zookeeper)
7. Each node has its own memory pool to store internal datasets for calculations
Hadoop + Spark
 Should be implemented only for extremely large stores
 Hadoop is a very slow datastore
 But Hadoop and Spark together allow us to use machine learning algorithms in
near-realtime and distributed manner
 Using event bus we can write all the data to Hadoop and run ML tasks on unlimited
volumes of data:
 Reporting
 Batch clustering
 Searching for patterns and outliers
Use CASES
Realtime Recommendations
 Using all historical data about user’s activity and internal datasources we can predict
customer needs
 User activities:
 Page views log with duration of an each page view
 Visitor returns
 Registrations
 Ratings and reviews
 Purchases
 Abandoned shopping cart
 Internal datasources
 Product’s prices with changes
 Discounts
 Customer segments
Personal discounts
 Create behavior patterns and detect cases when merchant should give a personal
discount to customer on a particular product
 Discounts will be shown to customer in realtime during catalog browsing
 If customer didn’t purchase discounted product, algorithm should take this into
consideration in further work with this customer
Personalized product catalog
 Besides product recommendations ML algorithms can determine customer’s
preferences and generate product catalog page according to them
 Product’s list may naturally include starred products from predicted list
 Another way is sorting list by “the best choice”

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Machine Learning in Magento 2

  • 3. Customer retention  Recommendations during product choosing  Cross-sell during purchasing process  Realtime personal discounts  Personalized search results
  • 4. Customer returns  Predict following sales and offer the customer  Personalized discounts and hot-sales e-mails  Work with abandoned baskets  After-sale support by e-mail of phone
  • 5. Customer behavior analytics  Customers segmentation  Automatic clusterization  Searching for hidden behavior patterns  Signalizing about unusual customer activities
  • 6. Customer behavior prediction  Predict customer preferences  Predict unknown data about customer  Predict future purchases  Predict lost customers  Predict anything for what you can find correlations
  • 8. Convert visitors to HAPPY buyers 1. Analyze visitor 2. Predict visitor needs 3. Determine visitor behavior pattern 4. Inject into salesflow the most effective additional points of influence personalized for the visitor 5. Suggest exactly what the visitor wants 6. Make the visitor happy buyer 7. Thank him for the purchasing and suggest more
  • 9. HOW
  • 10. Magento 2.0 instance Data Sources Events flow Generate events ES Persist events to datastore 321 … Event consumers Machine Learning standalone service Data required for prediction models Consumer asks by SOAP for a prediction results Create sub-events Calls to API in order to ML decisions Communicates with visitors Realtime calls to ML service API to obtain predicted data Hadoop Spark ML Batch and realtime long-term history analysis, heavy reporting Customer activities, internal data changes Data Flow
  • 11. Data sources 1. Products catalog, inventory 2. Pages visit logs 3. Purchases, abandoned baskets 4. Ratings, reviews 5. External data sources like Twitter, Amazon, public datasets, etc. 6. Timeseries with • history of changes of product’s prices • customers activity log
  • 12. Events FLOW 1. Common event bus using RabbitMQ for small customers and Apache Kafka for a large 2. It’s a horizontal highly scalable solution 3. All data inside events should get to the persistent datastore according to consumers rules 4. After that consumers may trigger sub-event for the ML algorithms that depends on changed data 5. If ML algorithm should call some API method in Magento (for example add customer to a new segment), it would publish event for the appropriate consumer 6. On each step we have the opportunity to integrate any external systems into our process flow through the event bus
  • 13. Persistent datastore 1. Datastore should have three levels I. In-memory datastore to cache operational data for realtime queries II. Operational datastore to persists all appropriate data for machine learning algorithms III. Analytical datastore for all historical data which will be used for a heavy reporting and deep ML analysis 2. Due to the probabilistic nature of the ML algorithm, in datastore architecture we can sacrifice Consistency of CAP theory and guarantee Availability and Partition tolerance 3. On the first step of discussing I propose to use Redis(VoltDB, Aerospike, Tarantool), ElasticSearch(Solr, MySQL, HBase) and Hadoop
  • 14. Machine learning service 1. Will be implemented as standalone service 2. Binary/SOAP/REST protocols using HTTP/TCP transport layer 3. Direct read-only access to all data sources 4. ACL checks should be implemented on clients 5. Horizontally scalable nothing-shared architecture 6. Calculated models will be synced using binary protocol without master-node (Zookeeper) 7. Each node has its own memory pool to store internal datasets for calculations
  • 15. Hadoop + Spark  Should be implemented only for extremely large stores  Hadoop is a very slow datastore  But Hadoop and Spark together allow us to use machine learning algorithms in near-realtime and distributed manner  Using event bus we can write all the data to Hadoop and run ML tasks on unlimited volumes of data:  Reporting  Batch clustering  Searching for patterns and outliers
  • 17. Realtime Recommendations  Using all historical data about user’s activity and internal datasources we can predict customer needs  User activities:  Page views log with duration of an each page view  Visitor returns  Registrations  Ratings and reviews  Purchases  Abandoned shopping cart  Internal datasources  Product’s prices with changes  Discounts  Customer segments
  • 18. Personal discounts  Create behavior patterns and detect cases when merchant should give a personal discount to customer on a particular product  Discounts will be shown to customer in realtime during catalog browsing  If customer didn’t purchase discounted product, algorithm should take this into consideration in further work with this customer
  • 19. Personalized product catalog  Besides product recommendations ML algorithms can determine customer’s preferences and generate product catalog page according to them  Product’s list may naturally include starred products from predicted list  Another way is sorting list by “the best choice”