Chapter 16: Correlation Rate: The Predecessor of Big Data Analytics

"Can you like each other without cause and effect? Aren't you kidding me? Although the little stubble felt novel, he did not completely blindly follow it and raised his own questions.

"There is a study that shows that coffee drinkers also live longer. Is this causality, or correlation? Xiaoguang indifferently asked himself, "Coffee drinkers and long-lived people highly overlap, but perhaps the reason for their longevity is that people who like coffee are relatively rich, have time, and pay attention to health." And insisting on exercising, this may be the real reason for their longevity. That's relevance. ”

Xiaoguang had confidence on his face, and gave a categorical example in his old business.

Little Stubble seems to have some truth in listening, "Then you don't need causality, just rely on correlation, can you help improve the 'cascading rate'?" ’”

"That's right! You don't need to know why this is happening, you just need to know that if you do this, you will sell many times the goods. We want turnover and profits, not social research. ”

Perhaps the most famous case in the world is the story of beer and diapers.

Legend has it that when Walmart researched the data, it found that the sales of beer and diapers were highly correlated. Beer sells well, diapers sell well, and vice versa. After Walmart discovered this "correlation", it put beer and diapers together, and sure enough, sales both increased.

Later, people tried to prove that there was "causality" between them. For example, some people say that this is because my husband bought diapers on the way home and took two bottles of beer by the way; It is also said that the father who takes care of the child is impatient, so he drinks beer to pass the time; Some research institutions also say that this is the result of self-indulgence after the father takes care of the family, and the compensatory psychology plays a role.

Whatever the reason, it doesn't matter, because as long as there is "relevance", the average order value has already been increased through co-selling.

Xiao Stubble's eyes lit up when he listened, and his eyes looked at Xiaoguang with more admiration, and the thoughts in his head were biased into the distance with the other party's analysis, and in just a few seconds, the thoughts turned a few times.

"In that case...... So what do we do? ”

"We are now going to make a program to analyze the preferences of customers who buy the shopping rate, and the result may be that the person who buys milk will bring a box of biscuits, and the person who buys shrimp chips will bring a packet of salt......"

"Why?"

"Don't do anything!" Why' is causality. Since there is a relevance, let's put biscuits next to the milk and salt under the shrimp slices to increase the high unit price! ”

Just finished explaining, Xiaoguang found that the skill he had just obtained in the attribute panel, the "related linkage rate" was actually upgraded to level 2, which is a bit amazing.

[Skill] Correlation Rate Lv1→Lv2: By looking for the correlation between products and attributes, and then using recommendations, bundling and other promotions, the average customer price can be effectively increased by 10%.

Although Xiaoguang also learned the concept of correlation rate, the idea was not as clear as it is now, through the explanation with the stubble, there was no concept that was integrated, and it was like a dam flood discharge in an instant, unimpeded.

The most important thing is that after I deeply understand this business concept, my skills have also been upgraded. I have to say, it's a bit handsome!

Xiao Stubble seemed to be more excited than Xiao Guang, he jumped up and down and paced back and forth, leaning less, as if making a major choice, and said loudly: "I will do this software!" ”

"Haha, it's okay, brother......"

"—I have one condition, though."

“…… What conditions? Let me start by stating that I don't have any money. ”

"I'm going to take a stake in your supermarket."

"Spending money on shares? I heard you right. ”

"That's right! I'm optimistic about your project and hope to get involved. ”

"This ......" is so sudden, Xiaoguang is really unprepared, "Can't you change the conditions?" ”

"Can't!"

"Can I think about it?"

"Give me an answer by 6 o'clock tonight."

"You leave work at 6 o'clock? So early? "Anyone who runs a computer store leaves work so early? It's too tsundere.

"Hmm."

……

Xiaoguang rode his old-fashioned "perpetual" bicycle, staring fast all the way, rushing home at a gallop, and discussing with Yingying the big matter of Xiao Hu's shareholding.

“…… Yingying, how's it going? I just told you that. ”

Linghu Yingying muttered: "It's a good thing that someone is willing to take shares, but I think it will be difficult for your software project to increase the joint rate to be effective in the short term." ”

"Why? Why? Why? This basin of cold water was poured on it, which made Xiaoguang's passion cool for most of the time, and he also planned to rely on the trick of "correlation rate" to open up a new situation, and then dominate the world, why was the little stubble convinced, and his sister didn't seem to be very optimistic?

Linghu Yingying took Xiaoguang's hand and comforted: "Brother, don't worry. I think this is a very good idea, but to find out whether there is a correlation between two products, you need a lot of data to support it, just the small number of customers in our store every day, the results of this data analysis may have a big error in the short term. ”

Xiaoguang suddenly realized that as a native of the future era, he has also heard of the concept of big data, and the so-called "big data" must have a certain level of data, so that the research and analysis will be accurate and meaningful, and he wants to accumulate a huge amount of data, or the amount of data worth analyzing, at least half a year or more than a year, which is still an optimistic idea.

Thinking of this, Xiaoguang instantly wilted, there were originally masters to join in the shares, this is a very worthy thing to show off, who knows that what he just said eloquently, just the idea of a pavilion in the air, can also fool the layman. This result has to be said, a bit frustrating.

"So what should I do?"

"Hee-hee, of course I listen to you, brother. Personally, I tend to invest in small stubble, so that on the one hand, it can relieve our financial pressure, and on the other hand, with this technical talent, in the long run, the benefits far outweigh the negatives. ”

"Well, it's really a shame to be busy, and what's even more embarrassing is that if the little stubble comes and finds that the program he designed is not as effective as I imagined, wouldn't it be a slap in the face. Alas......"

Ling Hu Yingying smiled, "Brother, think about it again, can the relevant correlation rate of commodities only play a role by data analysis?" ”

"What do you mean?" Xiaoguang saw his sister's mysterious smile, which only led him to think, but did not give an answer, and couldn't help but make him scratch his ears and cheeks, did he ignore something? What are the more awesome uses for this joint rate skill?

Xiaoguang silently walked outside the door, pretending to be a customer, entering the door, shopping, and checking out...... He slowly simulated this process step by step, and when he reached the cash register, he suddenly had a flash of inspiration and laughed.

"I see, I see."

He looked at the sister next to him who was not at all unruly with an evil face, and wondered if he would specially train her if he had the conditions in the future, so that she could pretend to be a ghost for herself every day, and only talk halfway.

Ling Hu Yingying blinked her innocent big eyes and said with empathetic excitement: "Brother, what did you find?" ”

Scold. What did I find that you really don't know?