This document summarizes a presentation about real-time personalization and optimization. It discusses how personalization increases user engagement and conversions for marketers by showing consumers content tailored to their interests. While marketers recognize the importance of personalization, many barriers like IT challenges and resource requirements have prevented widespread adoption. The presentation then explores how personalization works using visitor data like demographics, behavior, and interests to customize the user experience in real-time. Real-time optimization is presented as an improvement over traditional A/B testing by selecting the best variation for each individual user.

1. Real-time Optimization & Personalization
E-Commerce Optimization Meetup
Ori Lavie, VP Sales
ori@dynamicyield.com

2. Dynamic Yield Source: Dynamic Yield

3. Source: Real-Time for the Dynamic Yield Rest of Us, by Evergage

4. Dynamic Yield Source: Infosys

5. Source: 2013 Online Personal Dynamic Yield Experience Study, by Janrain

6. Source: 2013 Online Personal Dynamic Yield Experience Study, by Janrain

7. “If you could just stop marketing dresses to men, it would be amazing!”
Dmitry Siegal, Urban Outfitters, 2012
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8. The power of personalization for consumers and
marketers - a win-win situation
Consumers Marketers
say personalization influences
purchasing decision
favor personalization highly
appreciate personalization
based on past purchases
Personalization is a game-changer!
86%
67%
58%
believe personalization
is important
report increased ROI
with personalization
average sales uplift
from personalization
79%
59%
19%
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9. If marketers know personalization is important, why
aren’t they using it?
The
Barriers
IT roadblocks
Requires staff resources for implementation
Technical aspects make it difficult for marketer
Different solutions for different needs; messy integration
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11. What is Web Personalization?
Web personalization means customizing a website’s content and information for the
user according to that user’s interests, preferences and behavior. It’s basically
entering a website and seeing that its content is relevant to you, while other visitors
have a different experience that is tailored to them.
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12. Benefits of Personalization
Personalization increases user engagement
Show users what they’re looking for, and they’ll be more likely to take action.
Personalization increases conversions
If more users engage with your website, your conversions will be higher.
Personalization keeps your website fresh
Returning to a website and seeing the same offers will not keep users coming
back.
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13. Why do you need personalization?
• Your visitors are diverse
• There are different stages in the customer life cycle
• The same content cannot fit all
• It’s an opportunity to make the most out of every visitor
Awareness Consideration Purchase Retention
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14. 14
Personalization Data Types
• Demographics – Age, gender, income, occupation, geo & more
• Interests – Sports, politics, trip to Paris
• Intent – In the market for…
• Behavioral – Heavy buyer, frequent visitor, registered
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15. 15
Personalization Data Sources
Third-party
Data Providers
Marketing
Automation
CRM
First-time Visitor ✓ Limited ✖
Returning Visitor ✓ ✓ ✖
Registered User / Buyer ✓ ✓ ✓
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16. The 3 Ws of Website Personalization
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17. How does real-time personalization work?
Identifying the visitor’s attributes Customizing the user experience
• Geo-location
• Buying history
• Goals
• Time spent
• Loyalty
• Traffic sources
• Gender
• Organization
• Content
• User experience
• Calls-to-action
• Images
• Videos
• Product offers
• Advertisements (off site/on site)
• Mobile content
The key is making it happen in real time!
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18. First, Know Your Stuff
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19. The Space
Machine learning classifier:
Random Forest
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20. Remember:
Pixels = $
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21. Unregistered for Newsletter Registered for Newsletter

22. 22
First-time Visitor
Interested in Furniture
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23. 23
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24. 24
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25. New visitor spent
more than 30 seconds on page
Returning visitor that previously
browsed at least three dresses
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26. Change the product display on the Web page in
each category based on historic preferences
Sort by new arrivals Sort by popularity Sort by price
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27. Previously
on your site
Clicked this offer,
but didn’t make a
purchase
Offer + discount
delivered on external website
20% OFF after 24 hours
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28. When does Personalization stop being fun and
start getting creepy?
28

30. How does classic A/B testing work?
Challenger (variation) Original (control)
50% of visitors
get the red version
the result:
20 signups
50% of visitors
get the blue version
the result:
52 signups
winner!
Winning variation distributed to 100% of visitors, all the time.

31. Real-time optimization?
Challenger (variation) Original (control)
Blue version performs better
for most users
Red version performs better
for some users
Personalize the choice of variation to each visitor.

32. Optimization Life Cycle
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33. Thank You
Ori Lavie, VP Sales
ori@dynamicyield.com