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How it works

We've pioneered machine learning for eCommerce that overcomes data, personalisation, and merchandising problems - making Loop54 unique.

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In-store vs. online

Personalisation

Online e-tailers struggle to replicate in-store customer experience and sales interactions.

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Brick-and-mortar store

Sales assistants can direct the shopper to the exact department or item they’re looking for. They can interact, ask questions, and offer that personal touch.

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Online

E-tailers lack the ‘human-like’, one-to-one personalisation of product discovery. No virtual assistant is waiting to react to each customer need. The shopper must navigate the website alone.

Relevance is key

Merchandising

It’s difficult for online retailers to automatically merchandise thousands of Stock Keeping Units (SKUs) in a relevant way.

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Real-time relevance

Changes to inventory or promotions can make it hard to achieve widespread relevance across all products (general relevance) in real-time when searching or browsing through an online store.

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User experience

As general relevance is still unattainable, e-tailers can’t create a personalised customer experience across key user touchpoints – including site-search and navigation.

To solve these problems, e-businesses must utilise the benefits of machine learning.

Machine learning for eCommerce

The key to creating the sought-after relevance and personalisation in eCommerce is to understand people’s intent and preferences in real-time. Machine learning can, but the eCommerce industry has so far lacked the vital technology for it.

Why?

1.

There has been a lot of hype around machine learning technology in eCommerce. The rapid demand for artificial intelligence (AI) powered solutions has become the norm. Yet, these machine learning solutions rely on big data models.

2.

As the name suggests, big data models need huge amounts of quality data – and eCommerce data is extremely sparse. As a retailer, you may have users who visit your store at a lower frequency. More so, you’ll have a large catalogue of products that frequently change, per season, campaign, or by stock-levels.

3.

The constant changes and scarcity of eCommerce data means that big data models can’t learn any meaningful patterns, especially for long-tail search queries. The result is eCommerce machine learning models that only work with large amounts of data and fail to deliver personalisation on a smaller scale.

How can e-tailers solve this problem?

That’s where we come in. We created Loop54 as an innovative solution to these problems. Our easy-to-implement machine learning algorithm personalises user experience without relying on big data.

To better understand why Loop54 is unique, let’s look at how an example of classical machine learning – AI-based image classification.

How machines work

Within each layer of the machine learning model, the amount of signal networks can vary by complexity. In some cases, each layer can contain tens or hundreds of millions of parameters that dictate the path of a signal. And, image classification is often wrong first-time. For example, the model might understand the image as a cat, not a dog.

To achieve the correct conclusion, we must tell the model (input data) the image is a ‘dog’. The algorithm returns through the model and adjusts its parameters so it’s more likely to get it right next time. The process continues until you both agree, this is a dog.

What this means:

  • The model requires input of lots of repetitive data to work
  • Results are only relevant after a certain amount of time
  • Product attributes need to remain the same to achieve the same answer
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How humans work

In contrast, humans can associate and deduce information between objects quickly. It’s a natural function that helps us understand the world around us. Simply put, when we see the image of a dog, the image stimulates parts of the brain that stores information about the dog, such as size, colour, or friendliness.

As you encounter more images, you start to learn layers of complexity behind the concept of dogs. For example you learn that things like their color, size and friendliness will vary greatly, which is why you wouldn’t be surprised if you see a dog with a different color than you’ve previously seen.

What this means:

  • Only needs small amounts of data to understand product attributes
  • Gradually learns the complexity of pattern detection
  • Understands attributes even if they frequently change

How Loop54 Works

When combined, human and machine methods are a powerful solution to the personalisation problem.

Loop54 has merged machine learning with the human-like ability to learn attributes of individual eCommerce products with only a small amount of data. And it continues understanding, even if product attributes change.

Let’s take a closer look at exactly how with the latest model of Loop54: GOLEM

step-1

1.

The machine learning model starts in a clean slate – a blank mind

step-2

2.

We expose the model your product catalogue, one product at a time

step-3

3.

The Loop54 algorithm creates ‘neurons’ that are independent of your products. A neuron is where information about each new product is stored

step-4

4.

If a product appears which is very different from the previously seen products, Loop54 creates and stimulates a new ‘neuron’ somewhere else in the model

step-5

5.

When the same neuron is activated several times by several products, the algorithm intuitively learns the complexity of the neurons

step-6

6.

Products such as a ‘T-shirt’ and a ‘Tank top’ may stimulate the same neuron. As Loop54 is exposed to more of these products, it can differentiate them from each other

step-7

7.

It learns that ‘T-shirt’ products have changing attributes like ‘brand’ or ‘size’, while other attributes such as ‘category path’ do not change

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A second layer of neurons begins its work. An additional network of interconnected neurons creates a deeper layer of complexity. This layer will build a hierarchal model that explains a neuron’s complexity step-wise in layers

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We continue exposing the model to products until we have been exposed to all products of the feed. This creates a relatively large model with 5-8 layers of complexity

This forms the brain which powers all the products within your site and Loop54!

How is Loop54 unique?

Instead of relying on product attributes, Loop54 creates independent 'neurons' to understand product relationships.

Here is why Loop54 is the only true personalisation solution for eCommerce:

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Create powerful, personalised customer experiences

Loop54’s algorithm applies to Search and Navigation to present highly relevant, personalised results for each user session.

Site-Search Navigation

“Loop54 are an important piece of the puzzle to implement our vision of 'total commerce' and serve the customer in the best way."

Large children’s e-business

“It was obvious to us product search was going to be a key component of our success. Loop54 has really delivered on our expectations and helped us achieve our goals.”

Major fashion e-tailer

“Loop54 gives us valuable data about how customers behave on our site. It’s a gauge of what our customers want – insights we can use to connect the digital and physical environment in a relevant way.”

Established online DIY chain

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