Header tag
Sunday, 30 April 2023
Personalization, Segmentation or Targeting
Tuesday, 21 March 2023
Why Personalization Programs Struggle
So why aren’t we living in a world of perfect personalization? We've been hearing for a while that it'll be the next big thing, so why isn't it happening?
Because it’s hard. There's just too much to consider, especially if you're after the ultimate goal of 1-to-1 personalization.
In my experience, there are three areas where personalization strategies come completely unstuck. The first is in the data capture, the second is the classification and design of ‘personas’, and the third is in the visual design.
1. Data capture: what data can you access?
Search keywords?PPC campaign information?
Marketing campaign engagement?
Browsing history?
Purchase history?
Can you get geographic or demographic information?
Surely you can’t form a 1x1 relationship between each individual user and their experience?
Previous purchaser? And are you going to try and sell them another one of what they just bought?
Traffic source: search/display/social?
What products are they looking at?
What have they added to basket?
2. Classification: how are you going to decide how to aggregate and categorise all this data?
Is it a new user? Return user?
And the biggest crunch: how are you going to then transfer these classifications to your Content Management System, or to your Targeting engine, so that it knows which category to place User #12345 into. And that’s just where the fun begins.
And how do you choose the right data? I'm personally becoming bored of seeing recommendations based on items I've bought: "You bought this printer... how about this printer?" and "You recently purchased a new pair of shoes... would you like to buy a pair of shoes?" As an industry we seem to lack the sophistication that says, "You bought this printer - would you like to buy some ink for it?" or "You bought these shoes, would you like to buy this polish, or these laces?"
3. Visual Design
For each category or persona that you identify, you will need to have a corresponding version of your site. For example, you’ll need to have a banner that promotes a particular product category (a holiday in France, the Caribbean, the Mediterranean, the USA); or you may need to have links to content about men’s shoes; women’s shoes; slippers or sports shoes.
And your site merchandising team now needs to multiply its efforts for its
campaigns.
Previously, they needed one
banner for the pre-Christmas campaign; now, they need to produce four, five or
more instead. This comes as they are
approaching their busiest period (because that’s when you’ll get more traffic
in and want to maximise its performance) and haven’t got time to generate duplicated
content just for one banner.
Fortunately, there are ways of minimizing the headaches that you can encounter when you’re trying to get personalization up and running (or keeping it going).
Why not take the existing content, and show it to users in a different order? Years ago, there was a mantra (with a meme, probably) going around that told us to 'Remember: There is no fold' but I've never subscribed to that view. Analytics regularly shows us that most users don't scroll down to see our wonderful content lying just below the edge of their monitor (or their phone screen). So, if you can identify a customer as someone looking for men's shoes, or women's sports shoes, or a 4x4, or a hatchback, or a plasma TV, then why not show that particular product category first (i.e. above the fold, or at least the first thing below it)?
4. Solutions
The flavour du jour in our house is Airfix modelling - building 1/72 or 1/48 scale vehicles and aircraft, so let's use that as an example, and visit one of the largest online modelling stores in the UK, Wonderland Models.
How do you select which banner? By using the data that users are sharing with you - their previous visits, items they've browsed (or added to cart), or what they're looking for in your site search... and so on. Here, the question of targeted content is simpler - show them the existing banner which closest matches their needs - but the data is trickier. However, the banners and categories will help you determine the data categorization that you need to - you'll probably find this in your site architecture.
As I covered in a previous blog about targeting the sequence of online banners, the win here is that with six categories (and a large part of the web page being targeted), there are thirty different combinations for just the first two slots, with six options for the first position, and five for the second. This will be useful as the content is long and requires considerable scrolling.
Most analytics packages have an integration with CMS’s or targeting platforms. Adobe Analytics has Target, which is its testing and targeting tool. It's possible to connect the data from Analytics into Target (and I suspect your Adobe support team would be happy to help) and then use this to make an educated guess on which content to show to your visitors. At the very least, you could run an A/B test.
5. The Challenge
The main reason personalization programs struggle to get going is (and I hate to use this expression, but here goes) that they aren't agile enough. At a time when ecommerce is starting to use the product model and forming agile teams, it seems like personalization is often stuck in a waterfall approach. There's no plan to form a minimum viable product, and try small steps - instead, it's wholesale all-in build-the-monolith, which takes months, then suffers a "funding reprioritization" since the program has nothing to show for its money so far... this makes it even harder to gain traction (and funding) next time around.
So, don't be afraid to start small. If you're resequencing the existing content on your home page, and you have three pieces of content, then there are six different ways that the content can be shown. Without getting into the maths, there's ABC, ACB, BAC, BCA, CAB and CBA. And you've already created six segments for six personas. Or at least you've started, and that's what matters. I've mentioned in a previous article about personalization and sequencing that if you can add in more content into your 'content bank' then the number of variations you can show increases exponentially. So if you can show the value of resequencing what you already have, then you are in a stronger position to ask for additional content. Engaging with an already-overloaded merchandising team is going to slow you down and frustrate them, so only work with them when you have something up-and-running to demonstrate.
Remember - start small, build up your MVP and only bring in stakeholders when you need to. If you want to travel far, travel together, but if you want to travel quickly, travel light!
Sunday, 29 November 2020
Combinations and Permutations
PERMUTATIONS AND COMBINATIONS
After mentioning permutations and combinations in my previous blog post on targeting, I thought it was time to provide a more mathematical treatment of them. Everybody talks about them as a pair (in the same way as people tend to say 'look and feel', or 'design and technology').
Let's start with an example: three banners are to be shown on a website homepage. If we simplify and call the different pictures A, B and C, then one order in which they can be hung is A, B, C and another is A, C, B.
Each of these arrangements is called a permutation of the three pictures (and there are further possible permutations), i.e, a permutation is an ordered arrangement of a number of items.
Suppose, however, that seven banners are available for presenting on the website, and only three of them can be displayed. This time a choice has first to be made. If we call the seven banners A, B, C, D, E, F and G, one possible choice of the three pictures for display is A, B, and C - ignoring the sequence of the banners. Regardless of the order in which they are then hung this group of three is just one choice and is called a combination.
A, B, C
A, C, B
B, A, C
B, C, A
C, A, B
C, B, A
are six different permutations; but only one combination - thus: a combination is an unordered selection of a number of items from a given set.
In this post, I will discuss methods for finding the total number of ways of arranging items (permutations) or choosing groups of items (combinations) from a given set. But before we do so it is critical that we're able to distinguish between permutations and combinations. They are not the same, and the terms shouldn't be used interchangeably.
For example: a news website has ten news articles on its site, but the home page layout means that only five can be shown, in a vertical column. While they cannot display all ten of the articles, they must choose a group of five. The order in which the site selects the five articles is irrelevant (in this case); the set of five is only one combination. Once they have made the choice, they are then able to place the five articles in various different orders on the display stand. Now the site team are arranging them and each arrangement is a permutation, i.e a particular set of five articles is one combination, but that one combination can be arranged to give several different permutations.
1. The King's Health is Failing
2. Peace Treaty Signed!
3. Life found on Mars!
4. Bungled Theft on the Railway
5. Jack the Ripper
6. Reports of My Death Greatly Exaggerated
7. Lottery Winner Buys Football Team
8. New 007 is a Woman
9. Crop Circles - The Answer
10. Price of Eggs falls 10%
How many arrangements of the letters A, B, C are there?
Arrangements means the sequence is important, so this means permutations.
A team of six members is chosen from a group of eight. How many different
The sequence is not important, so this means combinations.
A person can take eight records to a desert island, chosen from his own
Different sets, again the sequence is not critical, so these are combinations.
The first, second and third prizes for a raffle are awarded by drawing tickets
Here, there's a difference between the order (or sequence, or arrangement) of the three prizes, so we're looking at permutations.
Permutations: the sequence is important.
If you're interested in how to use this to improve your website, I can recommend this article on personalisation and targeting and this one on why personalisation programs struggle (hint: they don't make good use of maths).
I've also written a more practical article on how to use combinations and permutations, looking at Targeting Website Banners.
Alternatively, if you like the maths of combinations and permutations, I can suggest Multiplications Puzzles
Monday, 27 July 2020
Targeted Banners: A study in permutations
You could determine which three to show based on various factors:
What does the customer search for? If they search for "Lego" or "Jurassic Park", then they'll probably appreciate the banners for construction toys and dinosaurs. Setting up some form of tracking on search usage across the site, and then matching this to the banner categories will enable you to show content that's more likely to be appealing to your visitors.
8 * 7 * 6 = 336
Tuesday, 14 May 2013
Web Analytics and Testing: Summary so far
Nevertheless, I decided to blog about my solution, and my first blog post was received kindly by the online community, and so I started writing more around web analytics - sporadically, to be sure - and covering online testing, which is my real area of interest.
Here's a summary of the web analytics and online testing posts that I've written over the last two years.
Pages with Zero Traffic
Here's where it all started, back in May 2011, with the problem I outlined above. How can you identify which pages on your site aren't getting traffic, when the only tools you have are tag-based (or server-log-based), and which only fire when they are visited?
Web Analytics - Reporting, Forecasting, Testing and Analysing
What do these different terms mean in web analytics? What's the difference between them - aren't they just the same thing?
Web Analytics - Experimenting to Test a Hypothesis
My first post dedicated entirely to testing - my main online interest. It's okay to test - in fact, it's a great idea - but you need to know why you're testing, and what you hope to achieve from the test. This is an introduction to testing, discussing what the point of testing should be.
Web Analytics - Who determines an actionable insight?
The drive in analytics is for actionable insights: "The data shows this, this and this, so we should make this change on our site to improve performance." The insight is what the data shows; the actionable part is the "we should make this change". If you're the analyst, you may think you decide what's actionable or not, but do you? This is a discussion around the limitations of actionability, and a reminder to focus your analysis on things that really can be actionable.
Web Analytics - What makes testing iterative?
What does iterative testing mean? Can't you just test anything, and implement it if it wins? Isn't all testing iterative? This article looks at what iteration means, and how to become more successful at testing (or at least learn more) by thinking about testing as a consecutive series, not a large number of disconnected one-off events.
A/B testing - A Beginning
The basic principles of A/B testing - since I've been talking about it for some time, here's an explanation of what it does and how it works. A convenient place to start from when going on to the next topic...
Intro To Multi Variate Testing
...and the differences between MVT and A/B.
Multi-Variate Testing
Multi Variate Testing - MVT - is a more complicated but powerful way of optimising the online experience, by changing a multitude of variables in one go. I use a few examples to explain how it works, and how multiple variables can be changed in one test, and still provide meaningful results. I also discuss the range of tools available in the market at the moment, and the potential drawbacks of not doing MVT correctly.
Web Analytics: Who holds the steering wheel?
This post was inspired by a video presentation from the Omniture (Adobe) EMEA Summit in 2011. It showed how web analytics could power your website into the future, at high speed and with great performance, like a Formula 1 racing car. My question in response was, "Who holds the steering wheel?" I discuss how it's possible to propose improvements to a site by looking at the data and demonstrating what the uplift could be, but how it all comes down to the driver, who provides the direction and, also importantly, has his foot on the brake.
Web Analytics: A Medical Emergency
This post starts with a discussion about a medical emergency (based on the UK TV series 'Casualty') and looks at how we, as web analysts, provide stats and KPIs to our stakeholders and managers. Do we provide a medical readout, where all the metrics are understood by both sides (blood pressure, temperature, pulse rate...) or are we constantly finding new and wonderful metrics which aren't clearly understood and are not actionable? If you only had 10 seconds to provide the week's KPIs to your web manager, would you be able to do it? Which would you select, and why?
Web Analytics: Bounce Rate Issues
Bounce rate (the number of people who exit your site after loading just one page, divided by all the people who landed on that page) is a useful but dangerous measure of page performance. What's the target bounce rate for a page? Does it have one? Does it vary by segment (where is the traffic coming from? Do you have the search term? Is it paid search or natural?)? Whose fault is it if the bounce rate gets worse? Why? It's a hotly debated topic, with marketing and web content teams pointing the finger at each other. So, whose fault is it, and how can the situation be improved?
Why are your pages getting no traffic?
Having discussed a few months earlier how to identify which pages aren't getting any traffic, this is the follow-up - why aren't your pages getting traffic? I look at potential reasons - on-site and off-site, and technical (did somebody forget to tag the new campaign page?).
A beginner's social media strategy
Not strictly web analytics or testing, but a one-off foray into social media strategy. It's like testing - make sure you know what the plan is before you start, or you're unlikely to be successful!
The Emerging Role of the Analyst
A post I wrote specifically for another site - hosted on my blog, but with reciprocal links to a central site where other bloggers share their thoughts on how Web Analytics, and Web Analysts in particular, are becoming more important in e-commerce.
MVT: A simplified explanation of complex interactions
Multi Variate Testing involves making changes to a number of parts of a page, and then testing the overall result. Each part can have two or more different versions, and this makes the maths complicated. An additional issue occurs when one version of one part of a page interacts (either supports or negates) with another part of the page. Sometimes there's a positive reinforcement, where the two parts work together well, either by echoing the same sales sentiment or by both showing the same product, or whatever. Sometimes, there's a disconnect between one part and another (e.g. a headline and a picture may not work well together). This is called an interaction - where one variable reacts with another - and I explain this in more detail.
Too Big Data
Too big to be useful? To be informative? It's one thing to collect a user's name, address, blood type, inside leg measurement and eye colour, but what's the point? It all comes back to one thing: actionable insights.
Personalisation
The current online political topic: how much information are web analysts and marketers allowed to collect and use? I start with an offline parallel and then discuss whether we're becoming overly paranoid about online data collection.
What is Direct Traffic?
After a year of not blogging about web analytics (it was a busy year), I return with an article about a topic I have thought about for a long time. Direct traffic is described by some people as some of the best traffic you can get, but my experiences have taught me that it can be very different from the 'success of offline or word-of-mouth marketing'. In fact, it can totally ruin your analysis - here's my view.
Testing - Iterating or Creating?
Having mentioned iterative testing before, I write here about the difference between planned iterative testing, and planned creative testing. I explain the potential risks and rewards of creative testing (trying something completely new) versus the smaller risks and rewards of iterative testing (improving on something you tested before).
And finally...
A/B testing - where to test
This will form part of a series - I've looked at why we test, and now this is where. I'll also be looking at how long to test for, and what to test next!
It's been a very exciting two years... and I'm looking forward to learning and then writing more about testing and analytics in the future!
Tuesday, 10 January 2012
Web Analytics: Personalisation
Withdrawing the cash from the savings at the building society was a typically anonymous matter, even though I had to provide my account passbook and photo ID, but this only became apparent when I paid the money into my bank, just across the road. I only had to provide the money and the debit card for my bank account, but as soon as my card had been scanned, the bank clerk began addressing me as David, and just by doing that, provided a much more personal service.
Earlier in the evening, I phoned the local take-away restaurant, and on the way back from the bank, I called in to pick up my order. I'd called them from my home landline, but hadn't provided a name or address. However, I've ordered from the take-away before, and they'd evidently stored my data: at the top of the receipt for my order were my full name and address. As I mentioned, I hadn't provided any information at all when I phoned the order through. Was it surprising to see my name and address on the receipt? Absolutely. Was it un-nerving? Perhaps, but it's more a reflection of a local business using data and information to their advantage. I don't know if they're going to use my purchase preferences to offer me particular choices or offers next time I order... I'll let you know.
Online, I'm not surprised when Amazon, or eBay, or any other e-commerce site, uses my login details and my activity on their site to try to provide me with relevant content or advertising. So I've been searching for a particular author, or a particular album, movie or laptop - should I really be surprised that they've noticed, and now they're using the promotional space on their sites to show me advertising of similar products? Is this scary new technology? Or is it something that's been around for many years, and this is just its newest incarnation?
Back when I was at high school, I had a part time job as a sales assistant at the local shoe store. It was easy enough - serve the customers, keep the shop floor well-stocked, tidy away surplus stock into the storage room. Part of the sales training (it wasn't extensive) was to try to cross-sell - shoelaces, polish, all that stuff, and to sell to customers when we didn't have what they wanted. For example - "Do you have this shoe in my size?" A quick trip to the stock room would reveal that we didn't, but a check around the shelves would show that we had it in blue, or brown instead. Or perhaps, if it was a shoe that looked like it was for the office, did we have a similar style. Was it good customer service? Was it personalisation? I would certainly hope so, as it led to me selling many pairs of shoes (and frequent declines, but that was part of the job). Did customers question how I'd manage to come with potential alternatives? Did they marvel at the apparent depths of the stock room, or think it was freaky or scary that I'd been able to anticipate their needs, based on just one query?
Perhaps, then, we shouldn't be surprised, or alarmed, when a computer algorithm looks at our on-site browsing habits and tries to provide us with what we appear to be searching for.