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Delivering on personalization: Harnessing feedback and machine learning to meet and anticipate shoppers' needs

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Presentation from NRF 2020: Retail’s Big Show
- Glenn Allison, Vice President, AI, Automation, and Innovation, Tractor Supply Company
- Brad Klingenberg, Chief Algorithm Officer, Stitch Fix

Published in: Retail
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Delivering on personalization: Harnessing feedback and machine learning to meet and anticipate shoppers' needs

  1. 1. Delivering on personalization: Harnessing feedback and machine learning to meet and anticipate shoppers' needs Glenn Allison, Vice President, AI, Data, & Innovation Tractor Supply Company @glennallison
  2. 2. Who We Are Pet Animal & Livestock Land Apparel Truck & Tool Seasonal Tractor Supply is Unlike Most Retailers: We Serve a Lifestyle
  3. 3. Leveraging our Physical Assets. . . . . .Growing Our Digital Capabilities
  4. 4. BOPIS Success >70% of online sales 20% in-store attach rate 4 2 1
  5. 5. Leveraging Artificial Intelligence Inventory Customer Engagement Convenience
  6. 6. Inventory Accuracy Alternate Sourcing Threshold Automation
  7. 7. Customer Engagement Anticipating Customer’s Needs Notifications Weather Hi John! The baby chicks you purchased in March should be ready for Layer Feed. Would you like to place an order today for delivery or pickup?
  8. 8. Convenience Voice and Image Search Team Member Notifications (in pilot) AI BOPIS Order Pickup (in pilot) Neighbor’s Club Member John Smith has entered the store.
  9. 9. Leveraging Artificial Intelligence Inventory Customer Engagement Convenience
  10. 10. Lesson’s Learned Keep It Simple Quick Wins Innovate In Your Space
  11. 11. Delivering Personalization Brad Klingenberg, Stitch Fix NRF | Jan 2020 Re-defining retail with data science
  12. 12. What is Stitch Fix? Online personal styling service helping people find the clothes they love through personalized shipments of apparel, shoes and accessories. 6,500+ employes 5,000+ stylists 125+ data scientists 1,000+ brands 3.4 million clients $5bn worth of merchandise sold entirely on recommendation to date.
  13. 13. Themes in retail The bar for compelling personalization is rising Competing on anything other than price and logistics requires offering something more More stuff, cheaper is not always better
  14. 14. There is too much stuff There are too many options when shopping online, causing a burden of search and discovery Research shows that people who are presented with a few options rather than many make better, easier decisions
  15. 15. A long history of personalization In some ways, personalization is old-fashioned
  16. 16. The solution: personal styling for everybody
  17. 17. Personalization at Stitch Fix
  18. 18. Stitch Fix
  19. 19. Stitch Fix
  20. 20. Stitch Fix
  21. 21. Stitch Fix
  22. 22. Styling at Stitch Fix Personal styling Inventory
  23. 23. Styling at Stitch Fix: personalized recommendations Inventory Algorithmic recommendations Machine learning
  24. 24. Styling at Stitch Fix: expert human curation Human curation Algorithmic recommendations
  25. 25. Lessons from Personalization at Stitch Fix Lesson 1: Feedback loops enable personalization at scale Lesson 2: Client incentives matter Lesson 3: Feedback can be fun
  26. 26. Lesson 1: Feedback loops power personalization at scale
  27. 27. Two categories of data Things clients tell us about themselves in general
  28. 28. Two categories of data Things clients tell us about their experience
  29. 29. Learning through feedback
  30. 30. Learning through feedback Better recommendations Better inventory
  31. 31. Lesson 2: Client incentives matter
  32. 32. You need the data! Personalization depends on knowing your clients
  33. 33. Broken feedback loops Why don’t traditional retailers have this data? ● They don’t know they need it ● Their clients have no good reason to give it to them Recall, the bar is high. You want to know every client!
  34. 34. Broken feedback loops ? Weak or missing altogether Unclear what the customer thinks about what they bought, much less others items
  35. 35. You need the data! The best way to get data from your clients is for them to want to give it you! Compelling self-interest drives feedback loops ● First order benefit (very compelling): your experience gets better! ● Second order benefit (less compelling): your feedback helps Stitch Fix / other clients
  36. 36. Lesson 3: Feedback can be fun
  37. 37. Sharing and learning
  38. 38. Data collection as engagement Providing information can be fun! And it works! 3bn+ ratings and counting...
  39. 39. Data as fuel for personalization
  40. 40. 2020 and beyond
  41. 41. New ways data science is driving greater client engagement and business impact into 2020 and beyond Shop Your Looks Shop New Colors Inventory Optimization Algorithm
  42. 42. Parting thoughts
  43. 43. Key to personalization = feedback
  44. 44. Thanks! Questions?

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