Real-time Optimization & PersonalizationE-Commerce Optimization Meetup

Ori Lavie, VP Salesori@dynamicyield.com

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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Thank You

Ori Lavie, VP Salesori@dynamicyield.com