Optimisation is the New Black
•
1 recomendación•1,266 vistas
We see trends come and go, buzzwords reach fever pitch and the latest tech platform saturate the market before they have even delivered on their promise. Is Optimisation the new ‘black’? We think yes, but like all ‘next big things', we all struggle to integrate this technique into BAU and leverage it to make our marketing dollars and effort more cost effective. Find out how, download the presentation
Recomendados
Recomendados
Más contenido relacionado
La actualidad más candente
La actualidad más candente (20)
Similar a Optimisation is the New Black
Similar a Optimisation is the New Black (20)
Último
Último (20)
Optimisation is the New Black
- 1. Optimisation is the new black.
- 2. DIGITAL EXPRESSO | NOVEMBER 2016 “Optimisation… is the new black” | Forbes Magazine 2015
- 3. DIGITAL EXPRESSO | NOVEMBER 2016 “Math… is the new black” | Econsultancy 2013
- 4. DIGITAL EXPRESSO | NOVEMBER 2016 “Content… is the new black” | Content Marketing Institute 2011
- 5. DIGITAL EXPRESSO | NOVEMBER 2016 “Big Data… is the new black” | Said everyone 2013
- 6. DIGITAL EXPRESSO | NOVEMBER 2016 “Mobile… is the new black” | Everyone still saying
- 7. DIGITAL EXPRESSO | NOVEMBER 2016 “[Insert Buzzword]… is the new black” | In this industry there’s always a new black.
- 8. DIGITAL EXPRESSO | NOVEMBER 2016 An act, process, or methodology of making something (as a design, system, or decision) as fully perfect, functional, or effective as possible; specifically : the mathematical procedures (as finding the maximum of a function) involved in this. SOURCE: www.merriam-webster.com/dictionary/optimization Optimisation: [op-tuh-muh-zey-shuh n]
- 9. DIGITAL EXPRESSO | NOVEMBER 2016 We see there being two distinct kinds of digital optimisation: Optimisation through Testing vs. 1. A X Y X show they did Optimisation through Personalisation 2.
- 10. DIGITAL EXPRESSO | NOVEMBER 2016 What we’re talking about today: A X Y X show they did Optimisation through Personalisation 2.
- 11. DIGITAL EXPRESSO | NOVEMBER 2016 Personalisation is all about relevance. what you want to say what they’re interested in Relevance
- 12. DIGITAL EXPRESSO | NOVEMBER 2016 And it’s easy right?
- 13. DIGITAL EXPRESSO | NOVEMBER 2016 We’ve got the…
- 14. DIGITAL EXPRESSO | NOVEMBER 2016 So why are we struggling? We think there are two key reasons why.
- 15. DIGITAL EXPRESSO | NOVEMBER 2016 Which makes governing the digital experience difficult and limits the depth that we can personalise. 1# The majority of tools are rule-based.
- 16. DIGITAL EXPRESSO | NOVEMBER 2016 It’s a mapping exercise. Where does this need to happen? Where Homepage, Category page, Product pages What is the single most distinguishing factor about the audience? Audience Prospect What other things can digital tell us about this audience to paint a clearer picture of their needs? Attribute 1 Attribute 2 Life Stage (single) Age range (20-30) What digital information can the website gather to understand what the audience is trying to achieve? Scenario Looked at a credit card 3 times in the last 5 days If a person demonstrating this intent walked into a branch, what would the customer service rep do/say? Business Rule Re-assure with brand and product value proposition What is the digital version of this? What needs to change on the site to deliver on the business rule? What Change tag lines in relation to Life Stage andAge Range Audience Attribute 1 Attribute 2 Scenario Business Rule What Where
- 17. DIGITAL EXPRESSO | NOVEMBER 2016 Audience segmentation can make rule based get big fast… 16 Geotribes 9 life stages 2 genders 8 age ranges 5 defection scores 11,520 combinations =
- 18. DIGITAL EXPRESSO | NOVEMBER 2016
- 19. DIGITAL EXPRESSO | NOVEMBER 2016 So it gets put in the too hard basket…
- 20. DIGITAL EXPRESSO | NOVEMBER 2016 What needs to happen to help deliver personalisation with more complex audience segments?
- 21. DIGITAL EXPRESSO | NOVEMBER 2016 Automation. Advanced machine learning algorithms. Automated personalisation uses visitor data to match the most relevant experience with a given visitor (basically “letting the machine do it for you”). It’s really useful when you are not sure which rules are most effective – so its solves that ROI problem. Over time, the algorithm learns to predict the most effective ‘thing’, for example content to achieve your goal. This is what the tech giants use to personalise the digital experience. Think Facebook, Netflix and Amazon – in fact Amazon originates 35% of sales through it’s automated personalisation strategy.
- 22. DIGITAL EXPRESSO | NOVEMBER 2016 Are there any Australian brands playing in this space?
- 23. DIGITAL EXPRESSO | NOVEMBER 2016 Australia Post saw a 35% uplift in conversions using automated personalisation. It’s a big risk to dedicate resources and budget to automated personalisation experiments. We helped Australia Post engineer a test to determine if automated personalisation would work better than rule-based. The automation experiment used a random forest algorithm to determine the best content to show a visitor based on their behavior. The test proved that automated personalisation did in fact drive better and faster results than rule-based automation – resulting in a 35% uplift against the control. We are now helping Australia Post scale-up automated personalisation across the wider business.
- 24. DIGITAL EXPRESSO | NOVEMBER 2016 Should all Australian brands roll out automated personalisation?
- 25. DIGITAL EXPRESSO | NOVEMBER 2016 Automation can be costly and resource heavy – and probably not a viable option for every day Australian brands just yet. =
- 26. DIGITAL EXPRESSO | NOVEMBER 2016 So our advice, if you are tackling personalisation is to start simple.
- 27. DIGITAL EXPRESSO | NOVEMBER 2016 Start here. SOURCE: HUGE INC. Business rules-based logic. Manage the process between rule-based logic and algorithmic includes operations, analytics, content and testing. Machine-based, algorithmiclearning to make personalised recommendations.
- 28. DIGITAL EXPRESSO | NOVEMBER 2016 Just pick 1 audience. Pick one scenario, for example Repeat Customers. Lets not make this too big – we don’t want to build 11500 variations to start with.
- 29. DIGITAL EXPRESSO | NOVEMBER 2016 Do we know: • what they just looked at? • if they abandoned something? • what they bought last? Don’t over complicate it. A lot of the time, people jump to the end goal – the vision, and that’s when it’ll get complex. Start with the most differentiating thing you know about a visitor.
- 30. DIGITAL EXPRESSO | NOVEMBER 2016 Companies are not ready to invest in the people power needed to run personalisation. 2#
- 31. DIGITAL EXPRESSO | NOVEMBER 2016 A typical adoption curve.
- 32. DIGITAL EXPRESSO | NOVEMBER 2016 What makes a difference? People.
- 33. DIGITAL EXPRESSO | NOVEMBER 2016 “Technology, data, strategy. These are necessary elements to make personalisation function…
- 34. DIGITAL EXPRESSO | NOVEMBER 2016 But people — the importance placed on developing and enabling talent in your marketing organisation — they are what make personalisation thrive and succeed.” -SOURCE: SCOTT BRINKER
- 35. DIGITAL EXPRESSO | NOVEMBER 2016 To succeed there must be a willingness from stakeholders and management, giving permission for teams to try and fail (and oodles of platform training). ‘Doh!’ ‘’Whoops!’ ‘Darn it!’
- 36. DIGITAL EXPRESSO | NOVEMBER 2016 “Optimisation… is the new black” | Digital Balance 2016
- 37. DIGITAL EXPRESSO | NOVEMBER 2016 Start here. SOURCE: HUGE INC. Business rules-based logic.
- 38. DIGITAL EXPRESSO | NOVEMBER 2016 Thank you. www.digitalbalance.com.au Digital Balance Melbourne +61 3 9020 7340 Perth +61 8 9227 8073 hello@digitalbalance.com.au
Notas del editor
- We had planned for our Founder and CEO, Tim Elleston to share some of our learnings with you, But unfortunately he’s had a death in the family and couldn’t be with us today. We’ve had the pleasure of working with some great brands – like newscorp, Foxtel, iSelect, AUS POST etc So I think we have some really interesting experience to share with you today. I’ll did co-write this deck with Tim, so this is not without his input But I come at it much more from a planner/strategist angle (rather than a technical one).
- So – optimisation is the new black? Forbes magazine made this claim last last year
- Just like econsultancy claimed that math is the new black in 2013
- CMI claimed content was in 2011
- And certainly someone said mobile is
- And you know what, in this industry, there’s always a new black We see so many new trends come and go and optimisation is the same as any other trend And like all those other trends, It struggles with definitions of what it is and what it isn’t So let’s make this clear
- What is optimisation? If you look up the dictionary it says something like this
- Within that there’s two distinct kinds Testing – so AB, multivariate that kind of thing And personalisation
- We want to talk about personalisation Because its been touted a lot lately And a lot of technology is claiming to be the silver bullet to doing it right but as I’ll talk about in this session, it’s a whole lot more than that.
- What is personalisation? Personalisation is about making something more relevant. Its about displaying relevant, tailored information usually based on browsing behaviour, in real time. The most popular form being product recommendations (think Amazon) But there’s also search personalisation, onsite, social and mobile off site to include things like doubleclick and facebook advertising to name a few examples.
- And it’s easy right? The vendors in this space all appear to make it look really easy don’t they? But how many here are personalising an onsite experience? (not email) So why aren’t many companies doing it? I mean if it really is that easy… And why are there even less companies doing it well?
- Technology – we’ve got the sitecores, the adobes, salesforces, marketos We’ve certainly got the data - and in fact Forbes said its all about the data -but one thing I know for sure is that its definitely not about the data alone And we’ve got the strategy right? - we’re all aiming toward a utopian channel/platform/device agnostic experience, specific to me.
- I think the biggest problem is that the majority of tools are rule based that means you have to set up a rule for each of the experiences to show to a particular audience. It’s great for very simple personalised experiences, but difficult to run something at-depth
- So taking that rule-based approach It’s essentially a mapping exercise. These are what we consider the 5 things that we map to bring a personalised experience together Audiences, and audience attributes is where we start Scenarios that include intent Business rules (what would we do as people if we knew about a visitor) Experience is what personalisation should we apply Location is where we should apply it @DE I HAVE MADE THIS BUILD, SO YOU CAN RUN THROUGH THE EXERCISE AT ONCE.
- So easy right? The problem we see is that our clients think about audiences in a really granular way Geotribes/helix personals and so on Beyond what rules based personalisation can realistically deliver on. Just to give you an idea of this…lets do some simple math to illustrate how this gets really big. Let’s personalise content based on this…that’s 11,520 possible combinations. And that’s before we figure out when and where we want to personalise. And it just gets too big
- we don’t want to do any of that, we just want to do a few rules – but which one is going to bring us greatest ROI? We don’t know We’re essentially just stabbing in the dark and hoping something sticks
- And we go back to what we know, which is batch and blast, because we can do that, we can measure that, we can tick the boxes.
- And we go back to what we know, which is batch and blast, because we can do that, we can measure that, we can tick the boxes.
- what needs to happen to help deliver personalisation with more complex audience segments? Automation. advanced machine learning algorithms to automatically provide personalised content based on behavioural data, providing a personalised experience. It’s really useful when you are not sure which rules are most effective– so its solves that ROI problem Over time, the algorithm learns to predict the most effective content and displays the content most likely to achieve your goals. Those that are doing really well, have gone down the automation path. The Facebooks, the Netflix’s, the Amazons - Amazon originates 35% of sales through personalisation.
- And we go back to what we know, which is batch and blast, because we can do that, we can measure that, we can tick the boxes.
- Some of our clients are playing in this space. AUST POST have literally last week released a test The campaign is an automated personalisation test that uses an algorithm (random forest) to determine the best content to show a visitor based on their behaviour and collected data. What makes this different to other tests it that there are no manual targeting rules – the algorithm optimises content shown against people landing on the shop and collect @ post pages. The whole purpose of this test is to figure out whether the ‘rule-less’ approach is effective. Where yet to find out...
- So should we all be aiming for automation? Of course not, its got to be in more affordable automation. But automated personalisation is pretty costly. It’s not viable for every day brands right now.
- So our advice, if you are tackling personalisaiton is to start simple. So simple you’re crawling. just pick 1 audience. Pick one scenario (e.g. Repeat Customers). Lets not make this too big – we dont want to build 11500 variations to start with. What do we know about them, that is in real time? We know what they just looked at. We know if they abandoned something. We know what they bought last. Don’t over complicate it. A lot of the time, people jump to the end goal – the vision, and that’s when it’ll get complex.
- So our advice, if you are tackling personalisaiton is to start simple. So simple you’re crawling. just pick 1 audience. Pick one scenario (e.g. Repeat Customers). Lets not make this too big – we dont want to build 11500 variations to start with. What do we know about them, that is in real time? We know what they just looked at. We know if they abandoned something. We know what they bought last. Don’t over complicate it. A lot of the time, people jump to the end goal – the vision, and that’s when it’ll get complex.
- So our advice, if you are tackling personalisaiton is to start simple. So simple you’re crawling. just pick 1 audience. Pick one scenario (e.g. Repeat Customers). Lets not make this too big – we dont want to build 11500 variations to start with. What do we know about them, that is in real time? We know what they just looked at. We know if they abandoned something. We know what they bought last. Don’t over complicate it. A lot of the time, people jump to the end goal – the vision, and that’s when it’ll get complex.
- So our advice, if you are tackling personalisaiton is to start simple. So simple you’re crawling. just pick 1 audience. Pick one scenario (e.g. Repeat Customers). Lets not make this too big – we dont want to build 11500 variations to start with. What do we know about them, that is in real time? We know what they just looked at. We know if they abandoned something. We know what they bought last. Don’t over complicate it. A lot of the time, people jump to the end goal – the vision, and that’s when it’ll get complex.
- Personalisaiton is a lot of work As with every new trend, its risky to employ people or teams just to personalise. And especially when we haven’t seen truly significant returns from personalisation yet
- So, here’s a typical adoption curve we see in organisations. Time along the bottom. Success up the side. We start all gung-ho, get a couple of wins, which may or may not be successful, but then it starts to get harder. There’s no governance in place – every stakeholder wants some part of it. Soon enough, you’ve got no consensus, no plan and no results. You start to come down this curve. Then you re-group. You know whats wrong. The ad-hoc approach is killing it. Not in a good way either. And so you restructure. You put some processes in place. You put some governance in. And you start to mature your program – and this might be true for any new trend - content marketing, mobile, what ever But for personalisation right now, we’re seeing most brands end here. And to be honest, most are still catching up on some of those other trends, There’s not the capacity to build a team for yet another new trend
- There’s not many of these types of studies available but this is a study on effective personalization by CEB Global, demonstrates that organisations performing above median ROI – where ROI is increased click through rates on personalisation, are also 7x more likely to rank people as the top enabler of personalisation. That’s above technology, strategy and data. That is a massive deal. Because its not something a vendor can sell you, it’s something has to be built and fostered internally
- You may or may not see the similarities of this quote with the famous line in the movie – ‘dead poets society’ Which makes similar comparisons of the sciences to the arts I think its an apt way to put the context of people within such hardline things such as tech, data and strategy People is probably the most hardest thing to obtain
- You may or may not see the similarities of this quote with the famous line in the movie – ‘dead poets society’ Which makes similar comparisons of the sciences to the arts I think its an apt way to put the context of people within such hardline things such as tech, data and strategy People is probably the most hardest thing to obtain
- Sitecore & adobe hold them to their promisses Hold your vendor accountable Enlist the help of some great marketing technologists (ahem) to mentor your team
- So yes, optimisation is the new black Well perhaps nearly the new black. But first we’ve got to get over that first adoption curve And to do that…
- Start small, don’t get complicated If you think it viable for your brand, Work your way toward algorithmic, or wait until it gets more obtainable/affordable But get the operational proceedures in place before you do so. And finally, know that people trump technology any day.