Personalization, Going Beyond
the Technology
How to engage customers without
letting technology get in the way of
the rela...
Edward Chenard
- Started big data, data science and personalization at Best Buy, was working
in big data at GE before it w...
The Situation
How Companies Personalize Is Not Personal
The Situation: Customers want a personalized experience, yet 2/3
c...
How Companies Personalize
Google vs Facebook
How Google Personalizes
• Google uses search and
clickstream history
• The Go...
What is Personalization
Simple Definition, Many Answers
An Experience Where the User and the Media Define a Tailored Exper...
Defining the Strategy
Elements of a Personalization Strategy
A Roadmap to Deliver the What and the How of Personalization ...
What is Personalization
how to disrupt the market
Persuasion Profiling
Persuasion profiling: Suggests that the kind of arg...
What is Personalization
using social graphs
Persuasion Profiling Coupled with Social Graph
The US Army uses social graphs ...
What is Personalization
People Do Not have One identity
Fundamental Attribution Error and Day Parting
Most personalization...
How to Deliver Personalization
To go Beyond Digital You need a Broader Strategy
Personalization is different, while most s...
ACTION IS THE
SCARCEST
RESOURCE
How to Personalize
May 19, 2014 11
Framing Personalization
12
Personalization
Strategy: Customer and Business Value
Analytics: Who, How, Where?
IT: What Tool...
How work gets structured
Vision &
Goals
Governance
Execution
Clearly articulated vision for
personalization and recommenda...
How We Need to Look at Discovery
Horizon
Future
Soon
Present
Past
Activity Centered Thinking
Signal Types
Signals have attributes depending on their representation in time or frequency domain can
also be categorized...
New Solutions Must Aid Human Insight
Big Data + Personalization + Amplified Human Intelligence
Last Decade
- Structured Da...
Human Motion Graph
18
Data Discoverers are setting the
trend in what will be common
place in just a few short years.
More people will want to us...
How to Deliver Personalization
How Macy’s Owns the Experience
Engage with customers to understand what they want and then ...
How to Deliver Personalization
Self Expression is the new Entertainment
Companies like Vine, tumblr and twitter are a new ...
Always Remember: Data, Insights,
Actions
Listen
• Listen to the data streams
Share
• Share the data with the rest of the o...
The Business Value
Framework
Timeliness Automated and
prompted
More Products Production
Efficiency
Ease of Data Collection...
DATA IS THE COMMODITY,
ACTION BASED ON
WISDOM IS THE SCARCE
RESOURCE
Next Steps
Early Stages Market LeadersLimited Selections and Locations
• Move Beyond your
site properties into
remarketing
• Recommen...
PERSONALIZED
MARKETING
Recommendations can
provide complete package
solutions based on a
customer’s purchases or
browsing ...
Develop Your Team
Data science is a discipline for making sense of unstructured as well as numerous
data sets at scale
Str...
How Does Personalization Help with Growth
Purchase
13%
Time On
Site 62%
Browse
25%
Areas of Growth
Impact on $ Before Afte...
Thank You, Questions?
Action
Wisdom
Knowledge
Information
Data
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Personalization, Going Beyond the Technology (Como envolver os clientes, sem deixar que a tecnologia fique no caminho da relação) - Edward Chenard

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Edward Chenard fala sobre "Como envolver os clientes, sem deixar que a tecnologia fique no caminho da relação" no Congresso E-commerce Brasil de Experiência do Cliente 2014.

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Personalization, Going Beyond the Technology (Como envolver os clientes, sem deixar que a tecnologia fique no caminho da relação) - Edward Chenard

  1. 1. Personalization, Going Beyond the Technology How to engage customers without letting technology get in the way of the relationship
  2. 2. Edward Chenard - Started big data, data science and personalization at Best Buy, was working in big data at GE before it was called big data. - Set up one of the first hadoop clusters in Retail and the Midwest. - Won tax innovation credits for my work on personalization -Tekne finalist for big data innovation - 20 years business experience, 10 years in personalization - Managed teams as large as 300 with product portfolios of over $4B - Developed products to eco-systems edward@echenard.com Twitter: Echenard Slideshare: Echenard
  3. 3. The Situation How Companies Personalize Is Not Personal The Situation: Customers want a personalized experience, yet 2/3 complain that companies rely too much on technology creating what is not a personalized experience.
  4. 4. How Companies Personalize Google vs Facebook How Google Personalizes • Google uses search and clickstream history • The Google Self is often vain, focused on embarrassing things and searches for things it would be reluctant to share in a social setting. • The Google downside is that it is less able to draw on your social side, but it is able to draw on your private self more than a social site might. • It is geared to our more Pavlovian selves. How Facebook Personalizes • Likes, Posts and who you interact with. • The Facebook self is often aspirational, more of a performer and tends to be more pro-social. • Facebook’s downside is that it is more of a public self, it draws less on your private self as we are unwilling to share this in a social setting • It is geared towards our more sharing side. Ultimately, neither one is a true representation of an individual
  5. 5. What is Personalization Simple Definition, Many Answers An Experience Where the User and the Media Define a Tailored Experience Personalization is often defined as the implicit and explicit use of data about an individual to tailor an experience for that individual. Essentially, the individual becomes the content with relevancy, intent and time becoming the key kpis in which we measure how we successfully addressed their needs. How companies develop a personalization experience differs, without a clear understanding of these different methods, personalization can deliver the wrong experience to the wrong persona. Personalization requires a theory of what makes a person – of bits of data, are most important to determine who someone is – and major players of the Web have quite different ways of approaching the problem. A good personalization strategy is an equation of psychology (the what) plus technology (the how), in that order.
  6. 6. Defining the Strategy Elements of a Personalization Strategy A Roadmap to Deliver the What and the How of Personalization is Needed The follow theories and concepts are the foundation to build the strategy of personalization. These are common components that will be the core of our strategy. How we Personalize • Combine the strengths of Google and Facebooks methods with psychograph techniques. • Listen, Adapt, Respond • Services co-created with customers and are interpedently with wider service networks. Benefits • People will log in more • Higher conversion and AOV • Better emotional bond between company and customer Psychograph Self Facebook Self Google Self Clash between Today and Future Aspirational You Present You 1-1
  7. 7. What is Personalization how to disrupt the market Persuasion Profiling Persuasion profiling: Suggests that the kind of arguments you respond to are highly transferrable from one product category to another. i.e.: If you like discounts you will respond well to them for shoes or TV’s. If you want the most popular and trendy product, you will want them for clothes and tablets. Combining persuasion profiling with new methods of sentiment analysis, it is now possible to guess someone’s mood and target the right message to them based on their mood, time of day and the kind of argument they best respond to. Ex: People use substantially more positive words when they feel happy. Analysis of twitter or FB can show this via sentiment analysis, based on the time of day, we can know what your typical aspirations are then coupled with the argument you tend to like, we can send an email to you about a product that will feel just right for you that is timely and relevant to your mood. Amazon can’t do this. In research, this has seen a 30-40% increase in sales.
  8. 8. What is Personalization using social graphs Persuasion Profiling Coupled with Social Graph The US Army uses social graphs for recruiting, they are quoted as saying they have “terrific success with social graphs. - If your 6 best friends enlist, us are likely to consider it too. Likewise, if your friends or neighbors are buying Samsung products, you are likely to consider Samsung products too. - Using social graphs to influence is becoming the new way to target customers. When combining social graph with persuasion profiling we not only know what you will consider based on social influence, but we know what message to send you and how to send it and when to send it, increasing our likelihood to increase conversion. Persuasion Profiling with Social Graph in Action
  9. 9. What is Personalization People Do Not have One identity Fundamental Attribution Error and Day Parting Most personalization programs attribute peoples’ behavior to their inner traits and personality rather than to the situation they’re placed in. Characteristics in people are fluid: Not all situations are the same, we need to match the personalization technique with the situation. The individual is the content, the tools are the context. To be competitive, our personalization needs to be focused on day-parting strategies. Day parting is why we don’t hear beer commercials at 8am, we have different needs and aspirations at different times of the day. With only one identity, we lose the nuances that make for a good personalization fit. With day parting, we understand people change and we change with them fitting the content with the context.
  10. 10. How to Deliver Personalization To go Beyond Digital You need a Broader Strategy Personalization is different, while most services are designed to be consistent and uniform, personalization is co-created, meaning, interact anytime anywhere. Technology as a communication tool first Personal interaction augmented by data Deliver value first Be Open Be clear and consistent Develop real fans
  11. 11. ACTION IS THE SCARCEST RESOURCE How to Personalize May 19, 2014 11
  12. 12. Framing Personalization 12 Personalization Strategy: Customer and Business Value Analytics: Who, How, Where? IT: What Tools and Why Social Sciences: Understanding the Human Condition - Measurable Results - Speed to market - What is important for the customer - ROI - MapReduce, Hadoop - Cassandra, The Cloud - Pig, Hive, - HDFS - Understanding the Customer - Social trends and how to use them - Linguistics - Cross cultural communication - Data Scientist vs. Statistician - Where to find talent? - Retain, Train - Offshore vs. Onshore - University involvement
  13. 13. How work gets structured Vision & Goals Governance Execution Clearly articulated vision for personalization and recommendations, precisely defined goals with how to measure. Defined scope of the product. Market strategy, customer segmentation, prioritization, org focus, measurement and incentive systems Production process, flexibility at scale, efficiency, relationship management, benchmarking, metrics, initiatives
  14. 14. How We Need to Look at Discovery Horizon Future Soon Present Past
  15. 15. Activity Centered Thinking
  16. 16. Signal Types Signals have attributes depending on their representation in time or frequency domain can also be categorized into multiple classes All signal types have certain qualities that describe how quickly signals can be generated (frequency), how often the signals vary (rate of change), whether they are forward looking (quality), and how responsive they are to stimulus (sensitivity) Rate of Change (Slow or Fast) Quality (Predictive or Descriptive) Sensitivity (Sensitive or Insensitive) Frequency (High or Low) Sentiment Expressed as positive, neutral, or negative, the prevailing attitude towards and entity Behavior These signals identify persistent trends or patterns in behavior over time Event/Alert A discrete signal generated when certain threshold conditions are met Clusters Signals based on an entity’s cohort characteristics Correlation Measures the correlation of entities against their prescribed attributes over time
  17. 17. New Solutions Must Aid Human Insight Big Data + Personalization + Amplified Human Intelligence Last Decade - Structured Data - Conclusive Dashboards - Small scale / sampling A data architect built a view to reach a specific conclusion Next 5 Years - Any data, from anywhere - Intuitive exploration - Making sense of it at scale Business users easily find, explore, visualize and navigate insights
  18. 18. Human Motion Graph 18
  19. 19. Data Discoverers are setting the trend in what will be common place in just a few short years. More people will want to use their data and the consumerization of data and technology will continue. As this trend goes, only organization that learn to merge the various disciplines of strategy, analytics and IT, will be successful data as a lifestyle Data Discoverers
  20. 20. How to Deliver Personalization How Macy’s Owns the Experience Engage with customers to understand what they want and then deliver. Engaged customers with rapid product teams to deliver apps that customers wanted. Results: Better customer engagement. Owning the complete experience, which means owning the relationship with the customer. Convergence of active and passive marketing.
  21. 21. How to Deliver Personalization Self Expression is the new Entertainment Companies like Vine, tumblr and twitter are a new way to engage customers. Social allows for moments in time to create impact. Engage customers with sentiment analysis and targeted ads (personal and highly relevant). Allow for rapid communication Helps to better understand intent. People are always using technology to help them be free, don’t disrupt but embrace this freedom and people will become customers. Perfect
  22. 22. Always Remember: Data, Insights, Actions Listen • Listen to the data streams Share • Share the data with the rest of the organization Engage • Engage to the data to find the insights Innovate • Innovate new ideas from the insights gained from the data Perform • Perform insightful actions from the data to create better customer experiences
  23. 23. The Business Value Framework Timeliness Automated and prompted More Products Production Efficiency Ease of Data Collection Business value Ease of Implementation Customer Needs Perceived Value Pre- recorded Different Products Production Flexibility Customer’s Wallet Share Customer Acceptance Value Perceived Ease of Data Collection Customer’s Wallet Share Business value Initiatives Ease of Implementation Customer Acceptance Focus on Customers Focus on Internals
  24. 24. DATA IS THE COMMODITY, ACTION BASED ON WISDOM IS THE SCARCE RESOURCE Next Steps
  25. 25. Early Stages Market LeadersLimited Selections and Locations • Move Beyond your site properties into remarketing • Recommendation: Razorfish • Develop your own internal systems • Recommendation: Learn from the Best • Develop in-store customer feedback • Recommendation: HappyorNot • Engage Vendors With strong skills in personalization • Recommendation, Wibidata How to Develop Your Plan
  26. 26. PERSONALIZED MARKETING Recommendations can provide complete package solutions based on a customer’s purchases or browsing history. FAMILIAR EXPERIENCE ACROSS CHANNELS Services are developed to be similar for customers across any touchpoint, familiarity means better relationships PERSONALIZED EVERYWHERE Every channel that customers interact with. ALL YOUR DATA IN ONE PLACE Customer data in one location for them to access and use will improve the overall customer experience by address a known customer want. Common Quick Win areas for Personalization THE RIGHT MESSAGE AT THE RIGHT TIME
  27. 27. Develop Your Team Data science is a discipline for making sense of unstructured as well as numerous data sets at scale Strategy - Define the goals Social Define how to engage IT Assemble the Technology Analytics Make sense of the Data Linguistics Distributed Processing (Hadoop) Algorithms Development Cross team Customer Experience Improvement
  28. 28. How Does Personalization Help with Growth Purchase 13% Time On Site 62% Browse 25% Areas of Growth Impact on $ Before After Conversion Rate 3.5% 12% AOV $50 $65
  29. 29. Thank You, Questions? Action Wisdom Knowledge Information Data

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