- Bandit ML gives Shopify customers a discount coupon.
- It gives a discount by evaluating recent transactions.
- The company plans to expand to other shops such as Calii.
Bandit ML sends the correct deal to the customers at the right time to maximize profit & retention. According to Bandit ml’s website, their recommendations increase the profit of a Shopify Seller by 3-20%.
The start-up was part of the accelerator Y Combinator Summer 2020 class. In September, it also raised a $1.32 million seed round from YC, Haystack Fund, and Webb Investment Network. Other investors were Liquid 2 Ventures, Jigsaw Ventures, Basecamp Fund, Pathbreaker Ventures, and various angels. That includes 10 current and former Uber employees, CEO Edoardo Conti said.
Conti Explains the benefits of Bandit ML
Conti is a former Uber software engineer and researcher. As he explained via email, the theory is that one customer will be more enthusiastic about a $5 discount. Also, free shipping may efficiently draw some. Meanwhile, another customer may have just made a major purchase and will not be interested at all.
Bandit ML, using the order history and website activity data of a retailer, will help them decide which deal for which shopper would be most effective. Conti acknowledged that there is other software for discount optimization out there, but he suggested none of them offer what Bandit ML does: “off the shelf instruments that use machine learning the way giants like Uber, Amazon, and Walmart do.”
He added that in its support for full automation, Bandit ML’s technology is exceptional. As some shops submitted their first batch of deals 10 minutes after they signed up.
And its ability to optimize over a 120-day cycle for longer-term metrics including transactions rather than relying on one-off redemptions. In reality, Conti said the start-technology up’s for making these decisions is similar to the ReAgent project he worked on Facebook.
Upcoming Plan for Bandit ML
At present, Bandit ML focuses on merchants with Shopify outlets, although it also supports other stores, such as Calii, that are not on Shopify. Conti said the platform has been used since July to send promotions worth millions of dollars, with one apparel company seeing a 20 percent rise in net profits.