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Linking analytics to outcomes and a holistic set of KPIs is needed to monitor the health of recommendation systems and understand their impact (intentional or otherwise). Volume of experimentation can be a valuable KPI unto itself. “If The best personalization systems are built from strong data-powered cultures.
KPI-driven pricing. Starwood Hotels (is a part of Marriott since 2016) uses data analytics to match room prices with current demand. Source: Analytics for an Online Retailer: Demand Forecasting and Price Optimization. “Our software works with massive amounts of data, both internal and external. says Shartsis.
It can also be measured in weeks instead of days (the KPI will be referred to as weeks-on-hand and have 52 instead of 365 in the formula) or be calculated for any period other than a year (change 365 to the period duration in days in the formula). Since this KPI shows the deviation from the forecast, the lower the percentile, the better.
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