Robotics and data science in retail 6:00 - 6:15: Welcome · 6:15 - 7:00: Customer segmentation - a methodology to understand customer preferences (Data Science) · 7:00 - 7:30: Pepper as a retail robot (UX) - Gathering customer data through Pepper (Technology) · 7:30 - 8:00: Networking + Q&A

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Data Science | Design | Technology
(July 11, 2017)
https://www.meetup.com/DSDTMTL
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2. 2
Agenda
6:00 - 6:15: Welcome
6:15 - 7:00: Customer Segmentation
7:00 - 7:30: Pepper the Retail Robot
7:30 - 8:00: Q&A + Networking

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4. 4
Stores

5. 5
ASSORTMENT PLANNING: Select the best set of
products to carry at each store for a future
season.

6. Customer
Segmentation

7. 7
From About Face: The Essentials of Interaction Design (Fourth Edition. Wiley, 2014)
Why Customer Segmentation?

8. White
Nike SketchersAsicsK-Swiss
Brand? Color?
Grey
Pink Accent
MediumLight
Fashion
Cross Training Shoe
Easy to matchEasy to match
Style?What are customers looking for?
Running Shoe
Fashion
Memory FoamMemory Foam
Fashion
Training Shoe
Black
Dark
Basics
Running Shoe
Gel Cushions Phylon MidSole
Pink
Colorful
Medium
Price?
$59,99 $74,99$74,99 $69,99

9. 9
Customer Identification
• Loyalty Programs
• Credit Cards
Transaction ID Store ID SKU ID Date Customer ID Sales Value …
20120408239 496 54381679 8/4/2012 094828844 $59,99 …
20120408239 496 54309110 8/4/2012 094828844 $15,89 …
20120408240 5000 79843130 8/4/2012 0 $96,99 …
20120408241 289 54339887 8/4/2012 48392024 $21,96 …

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2015 2016 2017
1 customer’s transactions over time
Nike
Grey
Pink Accent
Medium
Running Shoe
Fashion
Phylon Midsole
Light Shoe
Flexible
Performance Shoe
Price Band Good
Tech Running
Nike
Green-Blue
Yellow Accent
Medium
Running Shoe
Fashion
Air Cushion
Light Shoe
Flexible
Performance Shoe
Price Band Best
Tech Running
Nike
Black
Pink Accent
Dark
Running Shoe
Fashion
Basic Midsole
Stable
Comfortable
Performance Shoe
Price Band Best
Basic Running

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PCA
Principal Component
Analysis
0%
20%
40%
60%
80%
100%
%ofVarianceExplained
Nb of Components

14. 14
1st Component
ProductAttributesValues
PCA
Principal Component
Analysis

15. Demo

16. 16

17. 171st Component
2ndComponent
Customer segments
positions on the
2 first components
of PCA

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19. 19Copyright © 2016 JDA Software Group, Inc. Confidential

20. 20Copyright © 2016 JDA Software Group, Inc. Confidential

21. 21Copyright © 2016 JDA Software Group, Inc. Confidential

22. Additional Data?

23. Pepper,
the Retail Robot?

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Merci / Thank You
@jdalabsmtl
Data Science | Design | Technology
(Check for next DSDT meetup at https://www.meetup.com/DSDTMTL)