7 Habits of Highly Effective Personalization Organizations

7 Habits of Highly Effective Personalization Organizations

Hudson ArnoldStrategy Consultant, Optimizely

@hudson_arnold

hudson@optimizely.com

HABIT 1Create a Vision

“The best vision is insight.” – MALCOM FORBES

Habit 1 Takeaway:

Create a Vision

HABIT 2Experimentation Maturity

ARE WE READY TO STEP FORWARD?FORRESTER’S PERSPECTIVE

*Source: Forrester’s Q3 2015 Global Online Testing Platform Customer Online Survey

Dimensions of continuous optimization

Online testing is applied mostly to the “explore” and “buy” phases of the customer life cycle

Online testing is applied mostly to websites

Online testing practices are mostly executing only A/B tests

A minority (i.e., 30% or fewer) of customer interactions are included in online testing*

Opportunity for improvement

ARE WE READY TO STEP FORWARD?FORRESTER’S PERSPECTIVE

*Source: Forrester’s Q3 2015 Global Online Testing Platform Customer Online Survey

Dimensions of continuous optimization

Online testing is applied mostly to the “explore” and “buy” phases of the customer life cycle

Online testing is applied mostly to websites

Online testing practices are mostly executing only A/B tests

A minority (i.e., 30% or fewer) of customer interactions are included in online testing*

Opportunity for improvement

MATURE OPTIMIZATION PROGRAMS • Do more complicated tests than A/B• Test through more than just a few pages• Are segmenting analytics

ARE WE READY TO STEP FORWARD?OPTIMIZELY’S MATURITY MODEL

INTERESTED INVESTED INTEGRATED INGRAINED

VA

LUE

Culture

Process

Strategy

Development

ARE WE READY TO STEP FORWARD?OPTIMIZELY’S MATURITY MODEL

INTERESTED INVESTED INTEGRATED INGRAINED

VA

LUE

Culture

Process

Strategy

Development

YESMAYBENO

INTERESTED INVESTED INTEGRATED INGRAINED

VA

LUE

Culture

Process

Strategy

Development

• Inconsistent access to resources

MATURE OPTIMIZATION PROGRAMS • Are comfortable pushing boundaries• Have processes and teams in place• Speak language of testing

ARE WE READY TO STEP FORWARD?OPTIMIZELY’S MATURITY MODEL

LEADING INDICATORS

Experimentation Success

VELOCITYThe volume of experiments being ran, the reach of personalization campaigns.

Throughput:# of experiments per property per month/week.

AGILITYThe degree that the experimentation program acts on results.

Iteration:The % of experiments put into production and iterated upon.

EFFICIENCYThe efficiency that experiments get through production cycle

Drag:Average hours spent redeveloping due to QA

QUALITYThe average likelihood that an experiment will produce business impact

Impact Rate:% generating meaningful result

OPERATIONAL METRICS FOR EXPERIMENTATION

LEADING INDICATORS

Experimentation Success

VELOCITYThe volume of experiments being ran, the reach of personalization campaigns.

Throughput:# of experiments per property per month/week.

AGILITYThe degree that the experimentation program acts on results.

Iteration:The % of experiments put into production and iterated upon.

EFFICIENCYThe efficiency that experiments get through production cycle

Drag:Average hours spent redeveloping due to QA

QUALITYThe average likelihood that an experiment will produce business impact

Impact Rate:% generating meaningful result

OPERATIONAL METRICS FOR EXPERIMENTATION

MATURE EXPERIMENTATION PROGRAMS • Are high throughput• Develop efficiently (business as usual!)• Get consistent wins

Habit 2 Takeaway:

Experimentation Maturity

HABIT 3Assemble Your

Dream Team

D I S C O V E R Y I M P L E M E N T A T I O N P L A N N I N G P R O D U C T I O N R E P O R T I N G

PERSONALIZATION PLAYBOOKEND-END PROCESS + MILESTONES

CORE PERSONALIZATION TEAMSKILLSETS & TEAM ROLE

Executive Sponsor Project Manager Technical Lead Developer Content

makea slack channel

makethe time

Habit 3 Takeaway:

Assemble Your Dream Team

HABIT 4Enrich YourPerspective

YOUR Team

Status Quo:Tech: current capabilities and limitationsPeople and ProcessAudience Strategy

Look InternallyYour SystemsYour AnalyticsYour PersonasYour CompetitorsYour Strategy Future States:

Potential capabilities Audience ProposalUse Cases

YOUR TEAM’S TASKGATHER INTELLIGENCE

1

YOUR Team

Validation and Alternate Perspectives:Tech: Potential capabilities People and Process: Alternate ApproachesAudience Strategy

Consult External ExpertsVendorsConsultantsAgenciesAnalyst Reports Future States:

Potential capabilities Audience ProposalUse Cases

2

YOUR TEAM’S TASKGATHER INTELLIGENCE

YOUR Team

Status Quo:Tech: current capabilities and limitationsPeople and ProcessAudience Strategy

Validation and Alternate Perspectives:Tech: Potential capabilities People and Process: Alternate ApproachesAudience StrategyConsult

External ExpertsVendorsConsultantsAgenciesAnalyst Reports

Look InternallyYour SystemsYour AnalyticsYour PersonasYour CompetitorsYour Strategy

Future States:Potential capabilities Audience ProposalUse Cases

YOUR Brief

3

YOUR TEAM’S TASKGATHER INTELLIGENCE

YOUR Team

Status Quo

Validation and Alternate Perspectives

Consult External Experts

Look Internally

Future States

YOUR Brief

3

YOUR TEAM’S TASKGATHER INTELLIGENCE

Habit 4 Takeaway:

Enrich Your Perspective

HABIT 5Create Your

Audience Strategy

Recency & Frequency

Cross-sells & Up-sells

Value Propositions

START BY REVISITING YOUR BUSINESS STRATEGY

Propensity Models

Customer Journey Model

Price Sensitivity

LAYER ON MORE AUDIENCES LEFT- & RIGHT-BRAIN

PERSONAS

Brain by the Noun Project

ANALYTICS

WHAT TECHNICAL SIGNALS CAN WE LEVERAGE?CONNECT CONCEPT TO TACTIC

Viewed 2 Products, Didn’t Buy

Keyword contains ‘discount’

Most frequently viewed category

DMP + Uploaded Lists

Abandoned Checkout

Data Warehouse (Customer ID

Geo-Targeting)

Came from Ad Campign = Gift

Technical Signal Consideration-Stage

Wants a discount

Preference for a specific product type

High-Propensity

Needs a push

VIP Member

Urban Location

Shopping for a Gift

Audience Characteristic

PRIORITIZE, PRIORITIZE, PRIORITIZEPURSUE VARIETY OF AUDIENCES, MAXIMIZE REACH/QUALITY

Obvious Need

Large

Need for Creativity

Granular

Visitor Cohort; New, Returning, Active, Loyal

Large Geos; Coastal Urban, State, Key Cities

Browsed Twice; Product Category

Past Purchasers

Second Priority

Habit 5 Takeaway:

Create Your Audience Strategy

HABIT 6Unify

Everyone has to work together for personalization to work for you

View of the Customer

CONNECT YOUR DATAHOUSEKEEPING BEFORE TECHNOLOGY

Habit 6 Takeaway:

Unify

HABIT 7Crawl Before

You Walk

PHASED INTEGRATION OF PERSONALIZATIONCRAWL, WALK, RUN

0-12 weeks

BuildPhase 1

months 12-24

BuildPhase 3BuildPhase 2

months 3-12

Platform Implementation

Simple Audiences

Starter Campaigns,Limited Integration ofTesting + Personalization

Phase 2 Planning

REACH: 0-15%

PAGES: 1-3; only most critical ROI points

# CAMPAIGNS: 2-5

AUDIENCES: Natively available, simple, large, simple conditions; Metro, Single Behaviors

TACTICS: Modules (lightboxes), image swaps, little testing

0-12 weeks

BuildPhase 1

PHASED INTEGRATION OF PERSONALIZATIONCRAWL, WALK, RUN

Integration with 1st & 3rd Party Data

More Campaigns

Integration of testing & Personalization workflows

More advanced use cases

Phase 3 Planning

BuildPhase 2

months 3-12

PHASED INTEGRATION OF PERSONALIZATIONCRAWL, WALK, RUN

REACH: 30-60%

PAGES: Multiple campaign/audiences on top ROI pages

# CAMPAIGNS: 10-20 ongoing campaigns

AUDIENCES: Target intersecting audiences, 3rd & 1st party data used, more and complex behaviors

TACTICS: Experiments drive campaign execution and iteration

Full system integration

Ongoing improvement

New audience strategy

Use cases continually iterated

Web personalization data feeds email and ad deployment

BuildPhase 3

months 12-24

PHASED INTEGRATION OF PERSONALIZATIONCRAWL, WALK, RUN

REACH: 75-100%

PAGES: Most pages, multiple elements per page

# CAMPAIGNS: 25+ ongoing personalization campaigns iterated on

AUDIENCES: Old audiences iterated, new granular audiences

TACTICS: Fully expressive strategy

Habit 7 Takeaway:

Crawl Before You Walk

Create a VisionExperimentation MaturityAssemble Your Dream TeamEnrich Your PerspectiveCreate Your Audience StrategyUnifyCrawl Before You Walk