your data is screaming at you. uncover the science of retail

Your Data is Screaming at You.

Speakers

Todd HarrisDirector of Marketing

© 2015 Celect, Inc. All Rights Reserved.2

Vivek FariasCTO, Co-founder

Agenda

• An Intro to Celect• Current State of Retail• Why Comparisons and Choice Matters• Demo Scenario


An Intro to Celect

• Who we are‒ Predictive analytics platform focused on the

retail sector‒ Based in Boston, MA‒ Venture-backed, founded by two tenured

MIT Professors

• Awards & Recognitions‒ DEMO Fall 2014 – DEMO God Winner‒ MIT Computer Science and Artificial

Intelligence (CSAIL) Top 50 Greatest Innovations


Predictive Analytics Solutions for Retail


Right product in the right place at the right time across all channels.

Current State of Retail

• Retailers are awash in data‒ Inventory, PoS, browse history, transaction logs, etc

• Online / offline are blurring‒ Merchants often have responsibility for both online and in-store

• Merchants, buyers, planners under pressure to be smarter with allocations and forecasting


Do These Concepts Still Hold Up?


I like blue, so my customers will like blue also.

We sold 100 droids two years ago, 200 last year,so will forecast 300 for this year.NO

There’s a Better Way.

• Use the data you already have‒ Leverage predictive analytics to make better,

more informed decisions‒ Supplement your experiences, knowledge, and

intuition

• Realize one size doesn’t fit all• Understand choice – products interact

and influence each other


An Important Question


An Important Question

Comparisons are eas(ier) …

… but also, comparisons are everywhere.


Comparisons Are Everywhere


Traditional Reviews: Peter prefers Tamarind to Cafe Boulud

PeterG.

PeterG.’sProfile

AboutPeterG.

Peter G.


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Click Stream Data

© 2015 Celect, Inc. All Rights Reserved.


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Click Stream Data: Vinay is more in the mood for The Expendables 3 vs. Cosmos or The Bank Job or ... ?




(Brick and Mortar) Retail Data


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(Brick and Mortar) Retail Data: I prefer Neutrogenato Dove, and Aveeno, and …


Demo Scenario

• Mid-Size Retailer • Task

‒ Optimize assortment using our approach to learn choice patterns at individual stores

• Data‒ In-store inventory and transactions over time‒ Online browse / transactions

• Controlled experiment at 10 representative stores

16 © 2015 Celect, Inc. All Rights Reserved.

Demo!


Demo Summary

• Celect modifiers were applied to a limited portion of each test store

• Adjusting against control stores and for trailing 6-wk trends:‒ Celect modified departments yielded an incremental 6.65% increase in

revenue‒ We predicted 6.43%, so our performance is predictable

• Test stores in total yielded an incremental 2.98% increase in revenue potentially due to positive spillover effects of a better assorted store


Thank you!


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