CX Intelligent Apps for Oracle Adaptive · 2020-05-13 · Oracle Adaptive Intelligent Apps for CX...

Oracle AdaptiveIntelligent Apps forCX

Using Adaptive IntelligentCommerce and Marketing

March 2020

Oracle Adaptive Intelligent Apps for CXUsing Adaptive Intelligent Commerce and Marketing

March 2020

Part Number: E89330-16

Copyright © 2017, 2019, 2020, Oracle and/or its aliates.

Authors: Adaptive Intelligent Apps Information Development

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Contents

Preface .................................................................................................................................. i

1 Overview 1Welcome to Adaptive Intelligent Commerce and Marketing ................................................................................................. 1

Privacy, Cookies, and Shopper Consent .................................................................................................................................... 2

User Administration ....................................................................................................................................................................... 3

Accessibility ...................................................................................................................................................................................... 3

2 Commerce Insights and Lift Analysis 5Overview ........................................................................................................................................................................................... 5

Recommendations and Accepts ................................................................................................................................................. 7

Lift Analysis ..................................................................................................................................................................................... 7

How Boosts and Constraints Aect Lift Analysis ................................................................................................................... 9

3 Supervisory Controls for Commerce 11Overview .......................................................................................................................................................................................... 11

Guidelines for Adjusting Recommendations ........................................................................................................................... 11

Policies ............................................................................................................................................................................................. 12

Examples of Supervisory Controls ............................................................................................................................................ 14

Promotion Types ........................................................................................................................................................................... 15

4 Supervisory Controls for Marketing 17Overview of Programs and Switches ........................................................................................................................................ 17

AI Switch Metric Options ............................................................................................................................................................ 17

How You Review Your Program Switches and Paths ............................................................................................................ 18

Boost, Constrain, or Disable a Path ......................................................................................................................................... 20

Examples of When to Use Supervisory Controls .................................................................................................................. 20

Policies ............................................................................................................................................................................................. 21

5 FAQs 25Why aren't all my categories showing up? ............................................................................................................................. 25


How do I nd out which products are in a promotion? ....................................................................................................... 25

Why are products missing on the Insights page? ................................................................................................................. 25


Preface

PrefaceThis preface introduces information sources that can help you use the application and this guide.

Using Oracle ApplicationsTo nd guides for Oracle Applications, go to the Oracle Help Center.

Documentation AccessibilityFor information about Oracle's commitment to accessibility, visit the Oracle Accessibility Program website.

Contacting OracleCustomers can access electronic support through Oracle Support. For information, visit My Oracle Support or visitAccessible Oracle Support if you are hearing impaired.

Please give us feedback about Oracle Applications Help and guides. You can send an e-mail to:[email protected].

i

http://docs.oracle.com/

http://www.oracle.com/pls/topic/lookup?ctx=acc&id=docacc

https://support.oracle.com

https://www.oracle.com/corporate/accessibility/learning-support.html#support-tab

mailto:[email protected]


Preface

ii


Chapter 1Overview

1 Overview

Welcome to Adaptive Intelligent Commerce andMarketing

Note: The content in this guide about commerce functionality is meant only for customers using version 19.10of the application. To nd out which version you're using, click About on the user menu.

Adaptive intelligence combines decision science and machine learning to optimize your marketing orchestrations andcommerce performance. You can add an adaptive intelligence switch to a program in Oracle Responsys. The switchuses machine learning models to predict the best path for each customer based on their interaction history, prole, andcontent metadata. The path is the optimal mix of send-time, channel, and message for the target metric (opens, clicks,conversions) that you choose.

Machine learning evolves over time, so recommendations and oers are continually adapting. Two inputs drive theadaptation:

• Real-time consumer decisions and responses

• Massive ongoing collection of data from Oracle Data Cloud and Oracle Marketing Cloud

But sometimes we humans have important information we need to share with the machines. So business users, suchas managers and analysts, can use supervisory controls in the application to inuence the adaptive intelligence models.Here's a summary:

Supervisory Control Usage

Boost or constrain commerce objects Increase or decrease the likelihood of recommending individual products, categories, brands, orpromotions.

Boost or constrain programs paths Increase or decrease the likelihood of consumers being routed on dierent paths of a marketingprogram.

Set commerce policies Set policies for minimum price, minimum inventory, and brand exclusivity.

Tip: If you're connecting for the rst time, create a control group for lift analysis to learn about consumerresponses before using supervisory controls.

This image illustrates the high-level ow of data feeding into adaptive intelligence to deliver oers and orchestrations.

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Chapter 1Overview

All consumer data is anonymized, secure, and never shared or exposed in the application.

Privacy, Cookies, and Shopper Consent By default, cookies are installed in the consumer’s browser, where they collect information about the consumer’sinterests and activities. But consumers have the choice to opt out from click-tracking and anonymous data collectiondirectly. Some commerce sites are in jurisdictions that have special requirements, such as the General Data ProtectionRegulation (GDPR). For these sites, an operations manager can indicate that shopper consent is required, which triggersthe consent rules in the application.

Consumer Opt-Out from Adaptive Intelligence TrackingOracle provides tools for consumers, who aren't under special jurisdictions, to opt out of click-tracking and interest-based advertising. Consumers can view individual cookies using the Oracle Data Cloud Registry tool to remove

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Chapter 1Overview

individual interest segments associated with their computer and browser. The cookies related to adaptive intelligenceare AIO and BK.

Consumers can opt out in the following ways:

• The Oracle Adaptive Intelligence page to opt out from click tracking. For more information, see hps://aiapps.oracle.com/consumer/opt-out/index.html. (You can also get to this page using the Privacy Policy linkon the user menu in the application.)

• The Oracle Data Cloud page to opt out from anonymous data collection. For more information, see hps://datacloudoptout.oracle.com/registry

Site-Specic Consumer ConsentThe adaptive intelligence models send recommendations and collect consumer data only when the consumer providesexplicit notication of consent.

• Commerce: An operations manager can optionally specify that a storefront requires shopper consent beforethe application collects any data about consumer activities. See Site-Enabled Shopper Consent for moreinformation.

• Marketing: Consumer consent status is received during data ingestion. If consumers remove consent, andif you're using a single consent option that covers both marketing and machine learning, the contact data isremoved during the next ingestion. See Marketing Consumer Consent for more information.

For information about deleting consumer data, see Consumers' Right to be Forgoen.

User Administration

The roles in Oracle Identity Cloud Service (IDCS) determine which tasks users can perform in the application. If youhave the appropriate privileges, you can manage users in IDCS and assign them to specic roles. Select the UserAdministration shortcut on the user menu to go to IDCS, where you can change your password and map users to roles.See Manage Oracle Identity Cloud Service Users for information about user administration.

Accessibility You can use assistive technology products, such as screen readers, while you work in the application. You can also usethe keyboard instead of the mouse. This table lists the supported accessibility features for Oracle Adaptive IntelligentApps for CX.

Feature Description

Zoom

You can use your browser's zoom feature to resize text up to two hundred percent without loss ofcontent or functionality.

Contrast

Large-scale text and images of large-scale text have a contrast ratio of at least 3:1. Other text andimages of text have a contrast ratio of at least 4.5:1.

3

https://aiapps.oracle.com/consumer/opt-out/index.html

https://aiapps.oracle.com/consumer/opt-out/index.html

https://datacloudoptout.oracle.com/registry

https://datacloudoptout.oracle.com/registry

http://www.oracle.com/pls/topic/lookup?ctx=cloud&id=aicxSiteShopperConsent

http://www.oracle.com/pls/topic/lookup?ctx=cloud&id=aicxMarketingShopperConsent

http://www.oracle.com/pls/topic/lookup?ctx=cloud&id=aicxRightToBeForgotten

https://docs.oracle.com/en/cloud/paas/identity-cloud/uaids/manage-oracle-identity-cloud-service-users1.html


Chapter 1Overview

Feature Description

Screen Reader

You can use screen readers. No special mode is required to enable them.

Timing Adjustable

If you experience being timed out of the application, your Oracle Identity Cloud Service administratorcan extend the session expiry period.

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Chapter 2Commerce Insights and Lift Analysis

2 Commerce Insights and Lift Analysis

Overview

Use the Insights page to review the performance of recommendations and information about the consumers whoresponded. Review the number of oers made for each product, brand, category, and promotion in a chosen timeperiod, and analyze the accept rates.

This screenshot shows the Insights page displaying recommended products and promotions.

Use the Lift Analysis page to see how the adaptive intelligence models are aecting your purchase rates. You cananalyze and compare the lift rate of purchases between a control group of consumers who don't receive adaptiveintelligence oers and the rest of your consumers.

This screenshot shows the overall lift percentage and compares the purchase rate between the two groups.

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Details include the number of consumers for each stage of the oer. The sequence of stages an oer can have arereceived, clicked, added to cart, and purchased.

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Recommendations and Accepts When consumers respond to recommendations, the application interprets, records, and feeds back their responses inreal time to improve the continuous machine learning. Depending on the type of object and the actual response, theInsights pages display the numbers of accepts, as shown here:

This table describes a lile more about how accepts are depicted on the Insights page.

Object Accept Action Accept Meaning

Product Purchase A purchase of the product within two days of it being recommended

Promotion Use toward purchase An application of a promotion toward a purchase within two days of it beingrecommended

Other metrics you can view are the number of consumers who received oers, clicked oers, and added recommendedproducts to their carts. But the only actions that are recorded as accepts are product purchases and the use ofpromotions in purchases.

Tip: To get more insight into who's responding and purchasing products, go to the product and promotiondetails pages. You can drill down to see consumer information collected in Oracle Data Cloud.

Lift Analysis Use lift analysis to see how recommendations aect the purchase rate by consumers. You can set the percentage ofsite visitors to be in the oer group, which is the group that uses adaptive intelligence. The control group is a randomly

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selected subset of consumers that won't receive oers while the lift analysis is active. You can compare the relativenumber of clicks, cart-additions, and purchases between the two groups as data is collected.

The top-level measure of lift is the dierence between the purchase rate for the oer group and the control group.Purchase rate is the percentage of site visitors who made one or more purchases.

To start lift analysis:

1. On the Commerce tab of the Insights page, click Start Lift Analysis.

2. Select the percentage of site visitors to be considered for the randomly-selected oer group.The remaining percentage is calculated for the control group that you use for comparison.

3. Enter start and end dates for the duration of the lift analysis.

Tip: Leave the end date blank for an open-ended duration. If you set an end date, you can edit it laterto either extend the duration or to end it as of the current date. You can't change the start or end dateto a date in the past.

4. Click Create.To view or edit a recent lift analysis or one that's already in progress, click View Lift Analysis. You can start a new liftanalysis, but it will remove all data from the previous lift analysis.

It may take some time before you see responses in the lift analysis. For example, if your data is updated hourly, youwon't see any changes until an hour after the next hourly update. Responses might be minimal if your oer group issmall, or if you don't have many site visitors.

Percentages and GroupsDuring the early stages of a lift analysis, the number of consumers in the oer and control groups may look wrong.For example, if your oer group is 50%, and your site had four visitors, you might expect two of them in each group.However, the calculation for randomly selecting who is in each group doesn't simply count and divide the number ofconsumers. Instead, the percentage controls the likelihood of being put into one group or the other. So in this example,

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you might see four consumers in one group and none in the other. As more consumers visit your site, the consumer-to-group allocation will normalize as you would expect.

How Boosts and Constraints Aect Lift Analysis If your lift analysis is in progress for an extended duration, any adjustments you make to individual products, brands,categories, or even promotions will aect lift analysis results. You may want to rst monitor the behavior of the oergroup and control group without making any individual adjustments to boosts and constraints so that you can see trueresponses while using only the algorithms for adaptive intelligent recommendations.

It's best practice to avoid using boosts and constraints during lift analysis. If that's unavoidable, keep track of when youmade individual adjustments to explain any unexpected changes in responses.

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10


Chapter 3Supervisory Controls for Commerce

3 Supervisory Controls for Commerce

Overview

Use the Supervisory Controls pages to increase or decrease the likelihood of recommending a category, brand,product, or promotion. You can apply changes to multiple items in the current view or reset all items to their defaultrecommendations.

This screenshot shows the supervisory controls Products page with two categories, one that's set to never oer, and theother with the default seing.

Guidelines for Adjusting Recommendations You can adjust the likelihood of specic types of recommendations being shown by boosting or constraining on theslider. Boosting doubles the likelihood of a recommendation whereas constraining reduces the likelihood by half. Youcan also choose to never oer a specic product, brand, category, or promotion, which overrides any boost or constraintseing.

Choosing to never oer also overrides any policy seings. Each time you make an adjustment, you must apply yourchanges.

This screenshot shows the slider to boost or constrain the likelihood of recommendations and the Never Oer option.

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When to Make AdjustmentsBefore making any adjustments, it’s important to understand the impact that they could make on the machine learningoutcome. So it's best to make adjustments only in special circumstances when you know a crucial piece of informationthat the machine learning doesn't know.

All adjustments you make will override the decisions that the adaptive intelligence models carefully calculated. Andyour adjustments can aect recommendations in ways you don’t expect. For example, if you boost a product basedon incorrect market research, shoppers may ignore the recommendations. A low accept rate leads to less frequentrecommendations. The end result could be fewer recommendations that before you boosted the product.

The Reset All OptionClicking Reset All reverts every boost and constrain adjustment in the application back to the default values, even theNever Oer option. You might want to use Reset All after making adjustments that are no longer relevant to restorethe default values provided by the adaptive intelligence models.

Adjustments at Dierent LevelsYou can adjust product recommendations at a category, brand, or individual product level. If you adjust at a categorylevel, the adjustment applies to all products in that category. The same is true for the brand or promotion level.Adjustments apply to products in that brand or promotion. Adjustments for an individual product only aect thatproduct.

How the Never Oer Option Aects PromotionsA promotion containing even just one category, brand, or product that's set to Never Oer won't be recommended. Forexample, promotions aren't recommended in these scenarios:

• A promotion includes multiple products, and one or more is set to Never Oer.

• A promotion includes products in multiple categories, but one category is set to Never Oer.

• A promotion includes products of multiple brands, but one brand is set to Never Oer.

Policies

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Set policies for price threshold, inventory threshold, and brand exclusivity to control product and brandrecommendations. The policies you set will lter the recommendations derived by the adaptive intelligence models andmachine learning.

How Policies Aect Recommendations Policies can control recommendations at the site level. You can add policies based on:

• Minimum product price

• Minimum product inventory

• Brand exclusivity rules

These policies and rules have higher priority than boosts and constraints, with one exception. If a product or brand isset to never oer, it's never recommended. It won't even be recommended if it ts within any policies or rules that youdened.

Tip: If you have a minimum inventory policy and a fast turnover, it's important to refresh data frequently fromyour commerce application. Frequent refreshes keep the inventory counts in sync.

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Create Brand Exclusivity Policies Use brand exclusivity policies to beer control which types of products are recommended together in a product carouselwidget.

You can create as many brand exclusivity policies that you need, and even create policies with seemingly redundantvalues. For example, seing the same brand in both lists can prevent products from a boosted brand from being shownmore than once in the carousel.

To create brand exclusivity policies:

1. On the Policies page, click Add Policy.2. Select a brand in the rst list, and then select the brand to exclude when the rst brand is recommended.3. Click Save.4. Repeat these steps to add additional policies.

To remove a policy, click Delete in the row that you want to remove, and then save your changes.

To edit an existing policy, click Edit in the row that you want to change, and then save your changes.

Examples of Supervisory Controls It's best to only apply supervisory control in special circumstances when you know a crucial piece of information thatthe machine learning doesn't know. These examples here are some of these special circumstances.

New Product or Product LineYou've added a new product or product line that market research has suggested it could likely be very popular withconsumers. To bring more initial visibility to this product, you boost it. Boosting recommendations gives the product abeer chance of visibility against existing products with historically high purchase rates.

New Marketing CampaignYou have a new promotion for one free item of a product when purchasing another related item. Your experience andresearch suggests that the savings oered by the new promotion will make both products more aractive to consumers.And you think the cost savings will ultimately raise their purchase rates. You boost the promotion, and optionally, theproducts associated with the promotion.

Too Much InventoryYou have an excessive inventory of a particular product. You set the competing products to never oer, which increasesrecommendations for the product with high inventory.

Low InventoryYou have several items in your inventory that might run out soon. To prevent purchases of those items when they couldbe out of stock, you create an inventory threshold policy. The policy excludes products with inventory fewer than aspecied number from being oered.

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Change in Marketing StrategyYour marketing approach has recently changed and now you want to emphasize and place more aention on higher-priced items. To prevent lower-priced items from being recommended, you create a price policy to exclude oers foritems under the specied price.

SeasonalityBecause the school season is about to resume, you want to increase sales of individual back-to-school items. You boostselected products for the four weeks before school starts and then you reset them to their default values.

You have holiday items that you don't want recommended because the holiday has passed, but you don't want to hidethem completely from potential consumers. To recommend them less often and save inventory for the holiday season,you constrain the holiday category.

Recalled ProductThere was a defect with a product and you want to ensure it won't be oered to any consumers. Until the defectcan be repaired and the defective product restocked, you set the Never Oer option for the product, which stops allrecommendations for it.

Dominating Brand in Carousel WidgetsYou have good reason for boosting a specic brand, but you don’t want it to dominate the carousel widget as a result. Toprevent the boosted brand from being shown in the carousel more than once, you create a brand exclusivity policy withthe brand in both lists.

Promotion Types You can lter promotions on the Promotions page by the promotion type. The promotions you see are imported fromthe commerce application, which is where they're created and managed.

Promotion Type Description Discount Examples

Amount Discounts For price discounts o the original price. $5 oBuy boots, get $5 o socks

Percent Discounts For percentage discounts o the original price. 10% oBuy boots, get a second pair for 50% o

Fixed Price For a new price that's discounted from the original price. Now only $19.99Buy boots, get luxury socks for $5 a pair

Free For free, normally tied with another oer. Free shipping over $75Free sample with purchase Buy boots, get a free pair of luxury socks

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16


Chapter 4Supervisory Controls for Marketing

4 Supervisory Controls for Marketing

Overview of Programs and Switches Programs in Oracle Responsys map out marketing campaign ideas and objectives. Programs bring together yourcustomers’ data, your message content, and all your digital channels. For details, see Understanding Program. AIswitches send each customer along a path that adaptive intelligence models identify as the best channel and time forthat customer. For details on how to use a switch within a program, see AI Switch.

This screenshot shows an AI switch in a program along with the optimization metrics that you can select.

AI Switch Metric Options You can include an AI switch in your program in Oracle Responsys. The AI switch has three options for optimizationmetrics: open, click, and conversion.

This table shows the metric options supported for each channel.

17

https://docs.oracle.com/en/cloud/saas/marketing/responsys-user/Programs_Overview.htm

https://docs.oracle.com/en/cloud/saas/marketing/responsys-user/Programs_Design.htm#AISwitch



Supported Metric OptionChannel

Open Click Conversion (requires conversiontracking)

Email Yes Yes Yes

SMS No Yes Yes

Push Yes Yes Yes

When you select the metric for adaptive intelligence models to use while making the best channel and time prediction,keep these points in mind:

• Select conversion only if you have set up conversion tracking in Oracle Responsys. For details, seeUnderstanding Conversion Tracking.

• If your switch paths include SMS, don't select the open metric, because it isn't supported for that channel. If youdo select open, all your customers will be contacted by other channels instead.

How You Review Your Program Switches and Paths Use supervisory controls to review programs in Oracle Responsys that contain adaptive intelligence switches. This topicprovides a brief overview of the tasks you can do using supervisory controls.

In this screenshot of the Programs page, you see all the programs listed, their status and description, and the OracleResponsys accounts that the programs belong to.

You can select a specic Oracle Responsys account from the Account list to view all programs that belong to thataccount.

Program DetailsYou can click a program to view the details of the program.

This screenshot shows the page with the program details. It shows all the switches and the paths associated with theswitches.

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https://docs.oracle.com/en/cloud/saas/marketing/responsys-user/Overview_Conversion_Tracking.htm



Here are a few tasks you can do on the page:

• Review information about the program switches and paths.

• Review the graph showing the number of consumers already processed through a path, and the numberpredicted to go through the path.

You can adjust the scale of the graph by selecting a time range from the Scale list. Here’s a list of the time rangeoptions:

Scale Time Range

Day Last 12 hours, current hour, and the next 12 hours

Week Last three days, current day, and the next three days

Month Last four weeks, current week, and all future predictions

Year Last 12 months, current month, and all future predictions

• Disable a path, or boost or constrain the path based on your organization’s requirements.

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Boost, Constrain, or Disable a Path

You can adjust the paths for a switch on your program’s details page by boosting or constraining the path. You can alsodisable a path if you choose never to route a consumer through a path. Disabling the path overrides any boost andconstrain seing.

To boost or constrain a path:

1. Move the slider to adjust the frequency of consumers being routed on this path.

This screenshot shows an example path with a slider to boost or constrain the path.

2. Click Apply.To disable a path:

1. Click the toggle.2. Click Apply.

The changes you make aect only those consumers who arrive at the switch in Oracle Responsys after your changes.

Examples of When to Use Supervisory Controls

You can boost or constrain a path to manually control how often consumers are routed through that path. Theseseings override the default frequency that was already suggested by the adaptive intelligence models. Override thedefault frequency only in specic scenarios, such as these examples.

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New Mobile App VersionYour company has just updated its mobile app and the latest version is much beer. It’s being marketed very welland the reviews have been great. You predict that consumers are now more likely to engage with the app. Thereforeyou want to boost a path that contains the push notication message so that consumers are more likely to receivenotications through this path.

Mobile App Technical IssuesYour company’s mobile app has some technical issues, therefore you want to restrict push notication to consumers.You decide to constrain paths containing push notication messages so that consumers are less likely to be routedalong that path.

Budget LimitationsYour company has set a monthly limit for sending SMS messages. You notice that you’re reaching your monthly limitand so you want to either constrain or disable paths that send SMS messages to consumers.

Predicted Path PerformanceYou’re sure that a specic path is likely to work beer because you have recently updated the message content inthis path. You want to boost this path and constrain other paths to increase the likelihood of consumers being routedthrough the high-performing path.

Policies Use the Policies page to set blackout hours for time periods when you don’t want to send marketing messages. Forexample, you might want to prevent messages at night especially in countries that have regulations about the send timeof messages.

In this screenshot, 8 p.m. through 7 a.m. (20:00 to 07:00) are set as blackout hours every day for SMS and pushmessages.

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How Blackout Hours Aect Your Marketing Channels When you set blackout hours, your seings don’t change predictions that have already been made. As soon as you saveyour seings, the blackout hours are eective and apply to all future predictions. Selecting a single hour, for example11:00, blacks out all send times from 11:00:000 to 11:59:999.

Here are a few things to keep in mind while seing blackout hours:

• The blackout hours are based on the selected time zone. So let’s say you select 06:00 as the blackout hourwith Los Angeles – Pacic Time as the time zone. You then change the time zone to London – Greenwich MeanTime. The blackout hour remains at 06:00 for the new time zone.

• You can set blackout hours for only one time zone. If your customers span across time zones, such as dierentEuropean countries, you might want to extend the time zone to include blackout hours that cover all thesecountries.

• The selected time zone and blackout hours remain in eect regardless of the location of the customer. Forexample, if a customer travels to a dierent time zone, the blackout hours are still in the time zone you selectedin the policy.

Set Blackout Hours Use the Policy page to set the hours when you don’t want to send messages.

1. Click the navigation menu, and then click Policies.2. On the Policies page, select your preferred time zone.3. Select the hours for each day of the week for email, SMS, and push when you don’t want to send messages.

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Note: You might want to set the same blackout hours for all days of the week. Select the hours for oneday and click the Copy icon in that row to copy the seings for all days.

4. Click Save.

The blackout hours are now eective, and no messages will be sent during the specied time period.

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Chapter 5FAQs

5 FAQs

Why aren't all my categories showing up? If you have categories dened in your commerce application that aren't showing up in this application, it's because theyhave no products associated with them.

How do I nd out which products are in a promotion? To see which products are included in a promotion, you must go to the commerce application where the promotion wascreated.

Why are products missing on the Insights page? Either the import of objects from your commerce application is still in progress or the connection is lost. Try again later.

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Chapter 5FAQs

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CX Intelligent Apps for Oracle Adaptive · 2020-05-13 · Oracle Adaptive Intelligent Apps for CX...

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