how lazada ranks products to improve customer experience and conversion
TRANSCRIPT
![Page 1: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/1.jpg)
How Lazadaranks productsto improve customer experience and conversion
Strata Hadoop Singapore 2016
![Page 2: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/2.jpg)
How Lazadaranks productsto improve customer experience and conversion
Strata Hadoop Singapore 2016
![Page 3: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/3.jpg)
Leading e-commerce platform in South-East Asia
![Page 4: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/4.jpg)
Lazada Data ScienceData App Devs expose, integrate, platform-ize
Data Scientists explore, prepare, model
Data Engineers collect, store, maintain
Start from bottom up
![Page 5: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/5.jpg)
Ranking affects what appears on top
![Page 6: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/6.jpg)
Ranking is different from recom-mendation
![Page 7: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/7.jpg)
“How can I rank well on an e-commerce platform?”
![Page 8: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/8.jpg)
“How can I rank well on an e-commerce platform?”
![Page 9: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/9.jpg)
“How can I rank well on an e-commerce platform?”
![Page 10: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/10.jpg)
“How can I rank well on an e-commerce platform?”
![Page 11: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/11.jpg)
“How can I rank well on an e-commerce platform?”
![Page 12: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/12.jpg)
“How can I rank well on an e-commerce platform?”
![Page 13: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/13.jpg)
“How can I rank well on an e-commerce platform?”
![Page 14: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/14.jpg)
“How can I rank well on an e-commerce platform?”
![Page 15: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/15.jpg)
![Page 16: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/16.jpg)
Ranking products for catalog and search
Introducing new products
Emphasizing product quality
![Page 17: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/17.jpg)
Web Tracker(JavaScript)
Mobile Tracker(Adjust)
3rd Party(e.g. ,ZenDesk, SurveyGizmo)
Kafka Queues
Bulk Loaders (Spark)
HadoopHadoop
Data Exploration
+Data
Preparation+
Feature Engineering
+Modelling
(Spark)
Manual Boosting(Django)
Local Validation
A/B Testing
Product
Seller
Transaction
Product rankings
Split traffic and measure outcomes
(Category Managers)
(User devices)
![Page 18: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/18.jpg)
Overall resultsBetter ranking improved conversion and revenue per session
Introducing new products improved new product engagement
Emphasizing product quality had neutral to positive outcomes
![Page 19: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/19.jpg)
Ranking products for catalog and search
![Page 20: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/20.jpg)
IntentProvide shoppers quick access to best products in catalog/search results, making shopping easy
![Page 21: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/21.jpg)
ProblemLazada has millions of products—not easy to navigate
How to identify products that interest users in the future?
How do we measure interest?
![Page 22: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/22.jpg)
MethodologyMeasure shoppers’ interest through product engagement as a proxy
Clicks, add-to-cart, checkouts, etc.
Predict future interest
![Page 23: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/23.jpg)
Collecting behavioral dataTrack and collect events on web (JavaScript) and app (Adjust)
Stream and process via Kafka
Store in Hive tables
![Page 24: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/24.jpg)
Data preparationFilter and categorize online behavioral events (e.g., impressions, clicks, etc.)
Merge various views of product data (e.g. price, stock, etc.)
Exclude outliers and potentially fraudulent events
![Page 25: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/25.jpg)
Feature engineeringCalculate product engagement metrics (e.g., average clicks, conversion rate, etc.)
Derive product attributes (e.g., age, discount, etc.)
Exclude outliers (e.g., conversion rate > 1.00)
![Page 26: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/26.jpg)
Modelling (i.e., machine learning)Predict future (tomorrow’s) product clicks/checkouts
Examine results against a benchmark model
Pandas + XGBoost is faster and more effective than Spark + MLlib; assessing XGBoost4J-Spark
![Page 27: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/27.jpg)
Boosting products (manually)Manually increase rank of certain products (e.g., highly anticipated products, campaign tie-ups)
User-friendly interface to drag-and-drop products
Limits on how many products can be boosted
![Page 28: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/28.jpg)
Validation and A/B testingLocal validation is easy, but difficult to ensure similar results via A/B testing
A/B test all updates before production
![Page 29: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/29.jpg)
ResultsIncreased conversion rate by 3 – 8%
Increased revenue per session by 5 – 20%
![Page 30: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/30.jpg)
Introducing new products
![Page 31: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/31.jpg)
IntentProvide potentially good new products with exposure
Provide shoppers with new products they like
Keep catalog fresh
![Page 32: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/32.jpg)
ProblemProducts with strong engagement stay on top
Products without engagement don’t get traffic
How can we identify new products that are likely to interest users?
![Page 33: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/33.jpg)
Methodology (demand)Find what people need
Measure needs through internal/external data
Rank new products in terms of demand
![Page 34: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/34.jpg)
Methodology (supply)Find products similar to top products
Measure similarity with top products
Rank new products based on similarity and top product volume
![Page 35: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/35.jpg)
Data preparation and feature engineeringParse (log) data to identify shoppers’ needs
Measure potential product demand
Model product similarity (Spark GraphX / ElasticSearch)
![Page 36: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/36.jpg)
Validation and A/B testingLimited capability on existing A/B testing platforms to track specific products
Measure performance of new products across experimental groups using in-house tracker
![Page 37: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/37.jpg)
ResultsIncreased new product click-thru rate by 30 – 80%
Increased new product add-to-cart by 20 – 90%
Expected overall conversion to decrease—increased instead (though not statistically significant)
![Page 38: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/38.jpg)
Emphasizing product quality
![Page 39: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/39.jpg)
IntentImprove customer experience throughout purchase journey
From online browsing to receiving of product
Product quality identified as key driver
![Page 40: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/40.jpg)
ProblemHow do we measure product “quality”?
![Page 41: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/41.jpg)
Methodology (online)Content (e.g., title quality, richness of content)
Reviews (e.g., average rating, negative reviews)
Performance (e.g., click-thru rate, browsing time)
![Page 42: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/42.jpg)
Methodology (offline)Perfect order rate (i.e., not cancelled, not returned, etc.)
Negative feedback (e.g., counterfeit, complaints, etc.)
Seller metrics (e.g., timely shipped-rate, return rate, etc.)
![Page 43: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/43.jpg)
Data preparation and feature engineeringDerive product features (e.g., title quality, image quality, etc.)
Measure content richness (e.g., attributes available, grouping, etc.)
Measure delivery performance and customer feedback
![Page 44: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/44.jpg)
ResultsImproved quality of products displayed
Increased conversion by 3 – 5% for some countries
Small conversion change in other countries (non-significant)
![Page 45: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/45.jpg)
Key takeawaysData science is (i) team sport, (ii) partly R&D, (iii) iterative
How you use data to solve problems (methodology), data preparation, and feature engineering > machine learning
![Page 46: How Lazada ranks products to improve customer experience and conversion](https://reader031.vdocuments.site/reader031/viewer/2022030306/586fa60c1a28abcc238b827d/html5/thumbnails/46.jpg)
Thank [email protected]