Stitch Fix: Your Client Engagement Program Isn't Doing What You Think It Is.

...a contextual bandit is a framework that allows you to use algorithms to learn the most effective strategy for each individual client, while simultaneously using randomization to continuously track how successful each of your different action choices are.

Wow. I love this post. There are plenty of posts on How to do This Thing in R! but very few good posts on how to actually change the way your organization works using data. This post does the latter.

Stitch Fix has baked multi-arm bandits deep into the core of their customer engagement processes. Instead of marketers doing static segmentation and making static campaign decisions, a series of campaigns are designed and then customers are fed through an algorithm that decides which campaign is most appropriate for each individual customer.

This is not how most marketing teams operate today. It's a vision of how organizations will, in the future, run differently with data at their core.


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