Personalization Best Practices for Engaging Online Experiences

Download Personalization Best Practices for Engaging Online Experiences

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Slides from an American Marketing Association (AMA) webinar re: how to implement online personalization techniques - pitfalls, opportunities, best practices.

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<ul><li>1.Personalization Best Practices for Delivering an Engaging Online Customer ExperienceCarlos Carvajal, Sr. Director of Marketing, Baynote April 28th, 2010 </li></ul> <p>2. Agenda Personalization 101 Common Pitfalls Always Right Personalization Real-World Use Cases &amp; Results 3. What is Personalization? Personalization is a strategy for delivering a customer experience that is always personal, relevant and convenientEXPLICIT IMPLICIT Profile-based Behavioral-based Segment-based Context-driven Rules-driven Collaborative Filtering 4. Many Ways to Personalize ImplicitProduct Recommendations Content Recommendations 5. Many Ways to Personalize ExplicitCustomizationRole-based 6. Many Ways to Personalize Channels &amp; Content 7. Personalization BenefitsIncrease: Conversions Engagement Revenue Customer Insights Customer Lifetime Value 8. Common Personalization Pitfalls 9. Four Common Personalization Pitfalls1.Must Build a Comprehensive Customer Profile First 2.Create Rules to Target Content Based on Customer Preferences 3.Ultimate Personalization! 4.Personalization is Really Hard to Get Right 10. Pitfall #1: Must Build A Comprehensive Profile FirstBrother Uncle Husband EngineerCEO FatherWhat to recommend??? 11. Pitfall #2: Create Rules to Target Content 12. Pitfall #3: Ultimate Personalization! 13. Pitfall #4: Personalization is Really Hard to Get RightApproval &amp; DeploymentBI, Analytics &amp; MV Testing New issues with priority Too much noisy data Missed deadlines Rear-view mirror Out-of-sync with market Guess work Re-design Re-launchRe-platformAnnually Quarterly Monthly Development &amp; QA Tuning, Merchandizing &amp; Editing Too many projects Manual &amp; costly Conflicting priorities Top 5% most popular only Expensive Expert bias Too Slow, Too Expensive 14. Personalization in 2001 Learn From the PastSource: Web site personalization, IBM 2001 15. Always Right Personalization 16. Always Right Personalization http://www.baynote.com/resources/videos/snowboard/video.php 17. Always Right Personalization By understanding who you are and your shopping history I can accurately predict which products you are currently interested in.VS.What are you looking for? Many customers who came before you liked this beginner snowboard 18. Collective Intelligence Powers Always Right Personalization Combination of Social and Cognitive Science Sell 1 of many Crowds are free Invisible Crowds Niche segments Crowds &gt; Expert Actions &gt; Words Micro projects Crowds reduces cost Whole &gt; Sum of parts Real-time trends 7 deadly biases Real-time feedbackBut how? Aligned incentives? 19. Respond to Changing Customer Needs in Real-Time Approval &amp; DeploymentBI, Analytics &amp; Observes Automatically MV Testing New issues with priority Too much noisy data Emergent Patterns Missed deadlines Automatic Adjustments Real-time Rear-view mirror Out-of-sync with market Guess work Re-design Re-launchRe-platformAnnually Quarterly MonthlyUse Collective IntelligenceDevelopment Little IT Involvement&amp; QATuning &amp; Merchandizing Too many projects Manual &amp; costly Conflicting priorities Top 5% most popular only Expensive Expert bias 20. Three Principles for Achieving Always Right Personalization1.Focus on Context First 2.Understand Customer Intent Through Engagement 3.Like-Minded Peers Know What They Like Best 21. Principle #1: Focus on Context FirstBrotherUncle Husband Engineer CEO Father What to recommend CONTEXT DRIVES RELEVANCE? 22. Principle #2: Understand Intent Through Engagement 23. Principle #3: Like-Minded Peers Know What They Like Best 24. Putting it All Together page refers, links, entry trails,queries, page sizes, mouse movement,negative experience, virtual bookmarks,time spent, exit trails 25. Real-World Use Cases &amp; Results 26. Use Case: Personalized Landing PagesKnown contextUnknown context 27. Use Case: Personalized SearchThe crowd knowsinsight is reallythe LG Incite phone. 28. Use Case: Dynamic Navigation Real-time as trends emerge Based on aggregated visitorbehavior Brings content to thenavigation levelPopular content in category 29. Use Case: E-Mail PersonalizationTransactional EmailPromotional Email 4x Conversion Rate 30. Use Case: Video Recommendations 21% Increase inVideo Starts 31. Use Case: Recommendations Across Content TypesMost Popular, Related, Content Video, Email 32. Use Case: Social Personalization Items shared by friends drive recommendations based on your preferencesWhat Im cooking You Might Liketoday 33. Use Case: Identify Customer TrendsIdentify Trends Before They HappenFind Gaps and Optimize Product Mix 34. Use Case: Merchandising &amp; Targeting Controls Select Action SelectProduct Select whereproduct should beshown 35. Personal Profiles Serve as Filters and Constraints Personalized store 36. Personalization Best PracticesKnown Contextual RecommendationsPersonalized Contextual Recommendations ContextUnknownMost Popular Products Personal Recommendations Unknown ProfileKnown 37. Real World Results: BlueflyResults:300% lift in sales in Q4 09Profile $84M High fashion discount eTailer 50K SKUS, 350 brandsChallenges Low inventory per item Constant turnover of product Needed real-time solution By making recommendations morerelevant from a time perspective, weknew we would get a lift, but we hadno idea it would be this much" Marty Keane, SVP ecommerce 38. Real World Results: TurboTax Results: 35% increase in site searchconversion rates within weeksProfile 73% increase within a year 14M taxpayers Award-winning support site Challenges Taxpayers unable to find answers Manually hard-coding contentrecommendations in results Rapidly changing content &amp;seasonality The results were so overwhelminglypositive that it became a no-brainer. Chris Jones, Web Analytics Manager 39. Baynote in a Nutshell Company Pioneered real-time recommendationsusing collective intelligence in 2005 200+ web sites use Baynote todayTechnology Collective intelligence foundation Breakthrough UseRank patentsSolutions Real-time personalization, targeting andrecommendations SEO and SEM peer-driven Search optimization re-ranking byengagement Email &amp; video recommendations Insights - Merchandising, Testing,Reporting 40. Key Takeaways 1. Avoid Common Pitfalls Build a comprehensive customer profile first Create rules to target content Personalization is really hard to get right 2. Best Practices for Success Understand customer intent thru engagement Use Collective Intelligence to respond tochanging customer needs in real-time Personal profiles serve as filters &amp; constraints 3. Start Simple Identify high-value personalization use case:landing page, e-mail, product detail page Define clear success metrics and plan forresults within 8-12 weeks Use customer insights, run tests, adapt 41. Thank You for Your Participation! Contact Information E-mail: carlos@baynote.com Twitter: @BaynoteTo Learn More About Baynote www.baynote.com www.baynote.com/blogContinue the Conversation on Twitter: #AMABaynote </p>