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|E-COMMERCEEXPO 2020
Product & category recommendations and
user personalization for a metasearch engine
like moebel.de
13/02/2020
Berlin
|E-COMMERCEEXPO 2020
Who is moebel.de
 Biggest portal for the topic home & living & decoration in
Germany
 CPC (& lead based) revenue model
 Currently in Germany & France (more countries to come soon)
 Partner for more the than 250 online shops and local retailers
 Over 3 million active products that are constantly being
updated
 Flexible bidding based pricing model and dynamic sorting
 Connecting customers to online, multi-channel and pure offline
retailers
|E-COMMERCEEXPO 2020
Who am I
 Christian Borchert – Head of Consumer of Apps
 35 years old
 > 10 years digital experience (client- & consulting side)
 Responsible for product development for web & mobile
applications with a team of developers, UI & UX designers
 Mail: christian.Borchert@mobel.de
https://www.xing.com/profile/Christian_Borchert9
https://www.linkedin.com/in/christian-borchert-
87640a141/
|E-COMMERCEEXPO 2020
Aim of this presentation
 Teaser for personalization
opportunities
 Learn from errors moebel.de did
 Understand what you can achieve and
what you need
|E-COMMERCEEXPO 2020
From one to many
to
MANY TO MANY
|E-COMMERCEEXPO 2020
“Instead of one-way
interruption, web marketing is
about delivering useful
content at just the right
moment that a buyer needs it.”
David Meerman Scott
|E-COMMERCEEXPO 2020
How we reach our customers
Website
SEA
Social media Content marketing
Retargeting
SEO
Display ads
|E-COMMERCEEXPO 2020
 Act of delivering
personalized/
recommended items
 Can be everything you
have available
 Can be part of
segments or 1:1
 Meaningful clustering
of user base on defined
criteria
 Can be overlapping
 Criteria must be
trackable in some way
Recommendation
Some short definitions for the start
Personalisation
Combination of segments, data & hypothesis
to deliver a 1:1 approach to your users
|E-COMMERCEEXPO 2020
What everybody has in mind with recommendation
Product recommendation is quite easy
You totally rely on automated clusters and interaction tracking
|E-COMMERCEEXPO 2020
Recommendation works well
7 % revenue on
pure product
recommendations
ROI of first project
step after 3.5
month
Revenue is split onto
40 % additional and
60 % competitive1
placements
in competitive1 placement
uplift of up to 70 % on
desktop and 125 % on
mobile
1 competitive placement is in comparison to dynamic sorting
|E-COMMERCEEXPO 2020
Recommendations are fine but not
enough
Moebel.de is going “many to many”
|E-COMMERCEEXPO 2020
Limitations with a portal like moebel.de
 Users are unlikely to share personal information with
you (e.g. moebel.de account usage < 1 %) – most of the
services can be used anonymously
 You don’t have a basket, a checkout or a detail page for
products – all this would stay in contrast to a CPC
model
 Intervals for buying furniture are quite long (e.g. sofas
are bought every 7 years)
 High percentage of paid traffic
Nevertheless you have to cope with this – by making
the first click count & leverage the data you have
|E-COMMERCEEXPO 2020
Always start with a use case
Define hypothesis
 Define a case with major impact on business KPIs (revenue, retention, etc.)
 State the case as clear as possible
 e.g. Female customers who are second or third time buyer who with a net
income of above 4,000 € are more likely to click out on exclusive and high
priced furniture
Define the data
 Define how you are able to identify this users so that you can react to them
accordingly
…
|E-COMMERCEEXPO 2020
And than you see the issue with data
Datachecklist
 Net income
 Gender
 Age
 Second or third time buyer?
 Price sensitivity
 Step in customer journey
?
|E-COMMERCEEXPO 2020
Heads up – you know more than you think
Explicit data Implicit data or an educated guess
 New or returning user (cookie or local
storage based)
 Landing page – might indicate interest of
the user
 Email address/marketing consent (if logged
in – most likely not )
 Click history/wish list history
 Location (based on IP or location consent)
 Device type
 Current step in the purchase journey (e.g.
based on channel or keyword)
 Relevant category/categories (based on
keyword)
 All you can get from targeting your
audience on google, Facebook, etc. (age,
gender, income, price sensitivity interests,
etc.) – just connect the targeting criteria to
an (GDPR compliant) tracking
|E-COMMERCEEXPO 2020
Than you realize the complexity
 You have an ever increasing amount of data from tracking, user interaction, touchpoints, etc.
 The amount of segments & clusters growth exponentially
 You need more and more detailed algorithms to cope with the data
 Most likely you are not a big data & AI company and you lack the resources or need headcount
Situation
 Find partners & service providers you can work with and who enable your vison
 From moebel.de we are working with two proven vendors who went through a detailed and
transparent selection process
Solution
|E-COMMERCEEXPO 2020
Let’s see some ideas
| ‹Nr.›Name des Kunden
| ‹Nr.›Name des Kunden
Sofa kaufen
| ‹Nr.›Name des Kunden
Customer journey
purchase
category
Sofa
category 2
Schlafsofa
Wohn-
land-
schaft
Retention
new
customer
| ‹Nr.›Name des Kunden
Sofa kaufen günstig
| ‹Nr.›Name des Kunden
category
Sofa
Customer journey
purchase
category 2
Schlafsofa
Wohn-
land-
schaft
Retention
new
customer
Price segment
low
| ‹Nr.›Name des Kunden
Sofa kaufen günstig Hamburg
| ‹Nr.›Name des Kunden
category
Sofa
Customer journey
purchase
category 2
Schlafsofa
Wohn-
land-
schaft
Retention
new
customer
Price segment
low
location
Hamburg
| ‹Nr.›Name des Kunden
Don’t underestimate the effort
and the capabilities you will
need
|E-COMMERCEEXPO 2020
Things you need
Top level
commitment
 Without C-level commitment the project is doomed, as it requires staffing,
funding and expertise beyond normal operations
Expert staff
 You need people on board that can generate valid hypothesis and people
that are capable to transform them into valid cases (
Marketing power
 Face it – SEO traffic won’t pay the project bills, you need involvement of
performance marketing and possibly need to restructure your accounts to fit
the cases
Technology
 In the end it boils down to technology – you must be able to understand the
toolset (to use it) and to integrate and run it in your environment
|E-COMMERCEEXPO 2020
Thank you
&
Feel free to ask questions

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EBE 2020 Product & category recommendations and user personalization for a metasearch engine like moebel.de

  • 1. 1
  • 2. |E-COMMERCEEXPO 2020 Product & category recommendations and user personalization for a metasearch engine like moebel.de 13/02/2020 Berlin
  • 3. |E-COMMERCEEXPO 2020 Who is moebel.de  Biggest portal for the topic home & living & decoration in Germany  CPC (& lead based) revenue model  Currently in Germany & France (more countries to come soon)  Partner for more the than 250 online shops and local retailers  Over 3 million active products that are constantly being updated  Flexible bidding based pricing model and dynamic sorting  Connecting customers to online, multi-channel and pure offline retailers
  • 4. |E-COMMERCEEXPO 2020 Who am I  Christian Borchert – Head of Consumer of Apps  35 years old  > 10 years digital experience (client- & consulting side)  Responsible for product development for web & mobile applications with a team of developers, UI & UX designers  Mail: christian.Borchert@mobel.de https://www.xing.com/profile/Christian_Borchert9 https://www.linkedin.com/in/christian-borchert- 87640a141/
  • 5. |E-COMMERCEEXPO 2020 Aim of this presentation  Teaser for personalization opportunities  Learn from errors moebel.de did  Understand what you can achieve and what you need
  • 6. |E-COMMERCEEXPO 2020 From one to many to MANY TO MANY
  • 7. |E-COMMERCEEXPO 2020 “Instead of one-way interruption, web marketing is about delivering useful content at just the right moment that a buyer needs it.” David Meerman Scott
  • 8. |E-COMMERCEEXPO 2020 How we reach our customers Website SEA Social media Content marketing Retargeting SEO Display ads
  • 9. |E-COMMERCEEXPO 2020  Act of delivering personalized/ recommended items  Can be everything you have available  Can be part of segments or 1:1  Meaningful clustering of user base on defined criteria  Can be overlapping  Criteria must be trackable in some way Recommendation Some short definitions for the start Personalisation Combination of segments, data & hypothesis to deliver a 1:1 approach to your users
  • 10. |E-COMMERCEEXPO 2020 What everybody has in mind with recommendation Product recommendation is quite easy You totally rely on automated clusters and interaction tracking
  • 11. |E-COMMERCEEXPO 2020 Recommendation works well 7 % revenue on pure product recommendations ROI of first project step after 3.5 month Revenue is split onto 40 % additional and 60 % competitive1 placements in competitive1 placement uplift of up to 70 % on desktop and 125 % on mobile 1 competitive placement is in comparison to dynamic sorting
  • 12. |E-COMMERCEEXPO 2020 Recommendations are fine but not enough Moebel.de is going “many to many”
  • 13. |E-COMMERCEEXPO 2020 Limitations with a portal like moebel.de  Users are unlikely to share personal information with you (e.g. moebel.de account usage < 1 %) – most of the services can be used anonymously  You don’t have a basket, a checkout or a detail page for products – all this would stay in contrast to a CPC model  Intervals for buying furniture are quite long (e.g. sofas are bought every 7 years)  High percentage of paid traffic Nevertheless you have to cope with this – by making the first click count & leverage the data you have
  • 14. |E-COMMERCEEXPO 2020 Always start with a use case Define hypothesis  Define a case with major impact on business KPIs (revenue, retention, etc.)  State the case as clear as possible  e.g. Female customers who are second or third time buyer who with a net income of above 4,000 € are more likely to click out on exclusive and high priced furniture Define the data  Define how you are able to identify this users so that you can react to them accordingly …
  • 15. |E-COMMERCEEXPO 2020 And than you see the issue with data Datachecklist  Net income  Gender  Age  Second or third time buyer?  Price sensitivity  Step in customer journey ?
  • 16. |E-COMMERCEEXPO 2020 Heads up – you know more than you think Explicit data Implicit data or an educated guess  New or returning user (cookie or local storage based)  Landing page – might indicate interest of the user  Email address/marketing consent (if logged in – most likely not )  Click history/wish list history  Location (based on IP or location consent)  Device type  Current step in the purchase journey (e.g. based on channel or keyword)  Relevant category/categories (based on keyword)  All you can get from targeting your audience on google, Facebook, etc. (age, gender, income, price sensitivity interests, etc.) – just connect the targeting criteria to an (GDPR compliant) tracking
  • 17. |E-COMMERCEEXPO 2020 Than you realize the complexity  You have an ever increasing amount of data from tracking, user interaction, touchpoints, etc.  The amount of segments & clusters growth exponentially  You need more and more detailed algorithms to cope with the data  Most likely you are not a big data & AI company and you lack the resources or need headcount Situation  Find partners & service providers you can work with and who enable your vison  From moebel.de we are working with two proven vendors who went through a detailed and transparent selection process Solution
  • 20. | ‹Nr.›Name des Kunden Sofa kaufen
  • 21. | ‹Nr.›Name des Kunden Customer journey purchase category Sofa category 2 Schlafsofa Wohn- land- schaft Retention new customer
  • 22. | ‹Nr.›Name des Kunden Sofa kaufen günstig
  • 23. | ‹Nr.›Name des Kunden category Sofa Customer journey purchase category 2 Schlafsofa Wohn- land- schaft Retention new customer Price segment low
  • 24. | ‹Nr.›Name des Kunden Sofa kaufen günstig Hamburg
  • 25. | ‹Nr.›Name des Kunden category Sofa Customer journey purchase category 2 Schlafsofa Wohn- land- schaft Retention new customer Price segment low location Hamburg
  • 26. | ‹Nr.›Name des Kunden Don’t underestimate the effort and the capabilities you will need
  • 27. |E-COMMERCEEXPO 2020 Things you need Top level commitment  Without C-level commitment the project is doomed, as it requires staffing, funding and expertise beyond normal operations Expert staff  You need people on board that can generate valid hypothesis and people that are capable to transform them into valid cases ( Marketing power  Face it – SEO traffic won’t pay the project bills, you need involvement of performance marketing and possibly need to restructure your accounts to fit the cases Technology  In the end it boils down to technology – you must be able to understand the toolset (to use it) and to integrate and run it in your environment
  • 28. |E-COMMERCEEXPO 2020 Thank you & Feel free to ask questions