How does

Picnic

Use AI?

Increases customer satisfaction and retention through personalized recommendations.

Project Overview

Predicting which previously purchased items customers are most likely to rebuy, generating personalized shopping lists

Layman's Explanation

Picnic's CARP system learns from your shopping history to predict which items you'll want to buy again. When you open the app, it automatically creates a personalized shopping list with your most likely repeat purchases at the top, making grocery shopping faster and more convenient. The system recognizes patterns like how often you buy milk or when you typically restock household essentials.

Details

Picnic developed CARP as a specialized XGBoost-based machine learning model designed specifically for predicting repeat purchases in grocery retail. The model leverages handcrafted features tailored to capture grocery shopping patterns, including average rebuying frequency of items and customer shopping periodicity. Unlike complex sequential models that attempt to model entire purchase sequences, CARP focuses exclusively on the repeat purchase problem where abundant historical data exists.

The system operates by analyzing each customer's purchase history and ranking previously bought items by their likelihood of being repurchased. CARP powers multiple touchpoints within the Picnic app, most notably the previous purchases page where customers can quickly rebuild their shopping lists. The model processes millions of recommendations daily, serving as the backbone of Picnic's personalized shopping experience.

Performance analysis reveals CARP's superiority over state-of-the-art sequential recommendation models including RNNs, Transformers, and Graph Neural Networks. CARP achieves 25.2% improvement in HitRate@1, 24.0% improvement in Precision@10, and 23.5% improvement in MAP@30 compared to sequential model averages. The model demonstrates statistical significance with p-value of 0.000943 and large effect size, confirming its practical superiority for repeat purchase prediction in grocery retail contexts.

Analogy

CARP is like having a personal grocery assistant who has memorized your shopping habits over months. Just as this assistant would know you buy bananas every week but only get laundry detergent monthly, CARP learns these patterns and prepares your shopping list before you even think about what you need.

Machine Learning Techniques Used

  • Gradient Boosting: XGBoost framework provides the core predictive engine with efficient handling of tabular data and feature interactions
  • Feature Engineering: Handcrafted features capture domain-specific patterns like purchase frequency, seasonality, and customer shopping periodicity
  • Time Series Analysis: Modeling temporal patterns in customer purchase behavior to predict future buying likelihood
  • Ranking Algorithms: Converting prediction scores into ranked recommendation lists for optimal user experience
  • More Use Cases in

    Retail & Consumer

    3

    /5

    Novelty Justification

    While recommendation systems are common in retail, Picnic’s CARP shows notable domain-specific innovation by outperforming advanced sequential models with a tailored XGBoost-based approach.

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