real-time optimization and e-commerce personalization
DESCRIPTION
Marketing optimization statistics and introduction to real-time optimization and eCommerce personalization.TRANSCRIPT
Real-time Optimization & PersonalizationE-Commerce Optimization Meetup
Ori Lavie, VP [email protected]
Source: Dynamic YieldDynamic Yield
Source: Real-Time for the Rest of Us, by EvergageDynamic Yield
Source: InfosysDynamic Yield
Source: 2013 Online Personal Experience Study, by JanrainDynamic Yield
Source: 2013 Online Personal Experience Study, by JanrainDynamic Yield
“If you could just stop marketing dresses to men, it would be amazing!”
Dmitry Siegal, Urban Outfitters, 2012
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Personalization is a game-changer!
say personalization influencespurchasing decision
favor personalization highly
appreciate personalizationbased on past purchases
86%
67%
58%
believe personalization is important
report increased ROI with personalization
average sales upliftfrom personalization
79%
59%
19%
Consumers Marketers
The power of personalization for consumers and marketers - a win-win situation
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TheBarriers
IT roadblocks
Requires staff resources for implementation
Technical aspects make it difficult for marketer
Different solutions for different needs; messy integration
If marketers know personalization is important, why aren’t they using it?
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Web personalization means customizing a website’s content and information for the user according to that user’s interests, preferences and behavior. It’s basically entering a website and seeing that its content is relevant to you, while other visitors have a different experience that is tailored to them.
What is Web Personalization?
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Personalization increases user engagementShow users what they’re looking for, and they’ll be more likely to take action.
Personalization increases conversionsIf more users engage with your website, your conversions will be higher.
Personalization keeps your website freshReturning to a website and seeing the same offers will not keep users coming back.
Benefits of Personalization
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• Your visitors are diverse
• There are different stages in the customer life cycle
• The same content cannot fit all
• It’s an opportunity to make the most out of every visitor
Awareness Consideration Purchase Retention
Why do you need personalization?
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• Demographics – Age, gender, income, occupation, geo & more
• Interests – Sports, politics, trip to Paris
• Intent – In the market for…
• Behavioral – Heavy buyer, frequent visitor, registered
Personalization Data Types
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Third-party Data Providers
Marketing Automation
CRM
First-time Visitor ✓ Limited ✖
Returning Visitor ✓ ✓ ✖
Registered User / Buyer ✓ ✓ ✓
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Personalization Data Sources
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The 3 Ws of Website Personalization
Identifying the visitor’s attributes Customizing the user experience
• Geo-location• Buying history• Goals• Time spent• Loyalty• Traffic sources• Gender• Organization
• Content• User experience• Calls-to-action• Images• Videos• Product offers• Advertisements (off site/on site)• Mobile content
The key is making it happen in real time!
How does real-time personalization work?
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First, Know Your Stuff
The Space
Machine learning classifier:
Random Forest
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Remember:Pixels = $
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Unregistered for Newsletter Registered for Newsletter
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First-time Visitor
Interested in Furniture
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New visitor spent more than 30 seconds on page
Returning visitor that previouslybrowsed at least three dresses
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Change the product display on the Web page in each category based on historic preferences
Sort by new arrivals Sort by popularity Sort by price
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Previously on your site
Clicked this offer,but didn’t make a purchase
Offer + discount delivered on external website
20% OFF after 24 hours
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When does Personalization stop being fun and start getting creepy?
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How does classic A/B testing work?
50% of visitors get the red version
the result: 20 signups
winner!
Winning variation distributed to 100% of visitors, all the time.
50% of visitors get the blue version
the result: 52 signups
Original (control)Challenger (variation)
Real-time optimization?
Blue version performs better for most users
Red version performs better for some users
Personalize the choice of variation to each visitor.
Original (control)Challenger (variation)
Optimization Life Cycle
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