Strategic personalization: Better process, better insights, better sales.

Profitable ‘A-ha!’ moments everyday.™

© 2007-2016 WiderFunnel Marketing Inc.
@chrisgoward @hudson_arnold
Strategic Personalization:
Better process, better insights,
better sales.

Before we get started. . .
• This presentation deck and recording
will be available to you after the
webinar
• Use the General Chat panel to ask
questions or make comments in real
time
• Stay to the end for the chance to win a
free digital copy of You Should Test
That!
Type question here

• Developed the LIFT Model®, PIE Framework, and Infinity
Optimization Process™
• Keynotes at conferences and seminars around the world
• Author of You Should Test That! (Get a free chapter at:
YouShouldTestThat.com)
Chris Goward, Founder & CEO, WiderFunnel
Hudson Arnold, Strategy Consultant, Optimizely
• Develops cutting-edge personalization and experimentation
strategy for Optimizely’s customers and partners
• Works with small agencies, to Fortune 100 conglomerates,
and in every vertical, from B2B to retail

What’s the best button color?

What’s the average conversion rate in my industry?

Average conversion rates are meaningless.
Switzerland on average is flat.

The marketing customization spectrum
Mass Segmentation Personalization

TM
LIFT Model
(Note: For more info, google “WiderFunnel Lift”)

Relevance: No mention of Spa
vacation in text or imagery.

+26% +32%

Scent Trails
(aka. Information Foraging Theory)
“Information scent cues play an
important role in guiding users to
the information they seek.”
- Peter Pirolli et al. 1999

Personalization helps solve a problem

But personalization programs often fail.

• Ad hoc implementation of off-the-shelf features
• Poor personalization insights
• Lack of rigorous process
• Lack of resources to sustain it
Why do personalization programs fail?

What makes a great
personalization program?

It uses a rigorous process
to build personalization structures
based on tested customer insights.

Infinity Optimization Process

Three types of personalization insights
in your data
1. Deductive
How can general theories apply to this situation?
2. Inductive
Which specific behaviours of my users are general insights?
3. Self-selected
How can I gather information directly from my users?

Affiliate Offer Area
The website ranks well in
search for thousands of
DMV-related keywords.
The affiliate offer area is a
primary area of focus
(representing 90% of
company revenue).

Insurance Funnel

+7.34% Revenue Lift

The LIFT Model™
(Note: For more info, google “WiderFunnel Lift”)
Anxiety
Distraction
Relevance
Clarity
Urgency

Relevance: This social proof is
not specific to their location.

A
B

A
B
ê 5.4%

Personalization is a hypothesis until it’s tested

State segmented results range:
-60% to +70%

Self-Selection Personalization:
Ask your prospects to tell you about themselves.
Then, test the best marketing approach for each segment.

I have early stage disease.
I have late stage disease.
I manage the disease while working.
I am a physician treating the disease.
I work at a hospital treating the disease.
Healthcare
Company

You Should Test:
1. What are the best segments?
2. What are the best offers for
each segment?
Healthcare
Company

Result:
A series of A/B tests that
more than doubled their lead gen conversion rate

Deductive Research:
Find a persuasion principle that may apply and
test whether it works in this situation.

Consistency Principle
We like to keep consistent what
I think, say and do, and will
change to ensure this is so.
- Cialdini, Influence.

Conversion Rate: +1.97%
Average donation value: +3.07%
Revenue per visitor: +5.10%

Regular donor
Occasional
donor
First-time
donor
Non-
responders
14% of visitors
68% of donors

Where do these ideas come from?
The Explore process generates an unending stream of them.

Explore
Views data through the
lens of the customer
experience.
Generates surprising
customer insights to be
validated.

Explore

Inductive Research:
Analyze segments within your test results
for personalization insights.

• Disaster relief
organization
• Entering tax donation
season
Goals
• Lift donation conversion
rate and average
donation value
How?

Relevance: Headline does not mention
“donation”
Clarity: Eye flow is disjointed with mis-
aligned content
Clarity: Start of form is pushed down the
page
Value Proposition: Lowest donation
amount pre-selected
Clarity: 2-column form
Clarity: cc number and billing information
are separated
Anxiety: Many fields shown at once
Value Proposition: No testimonials for
credibility
Clarity: No hover state on the CTA

Variation A – Long Copy

Variation B – Form Focused

Variation C – Momentum

Which one won?
A
B
C

Overall winner
é 12.4% Donation
Revenue Lift

During Typhoon Haiyan Crisis
X
ê 15.7%
Donation Decrease

Validate
Confirms and creates
new insights using
rigorous A/B testing.

Validate
Results analysis for
insights is extremely
important.

For ‘Search Campaign’ Segment
Revenue Lift

For ‘Search Campaign’ Segment During the Crisis
Revenue Lift

Three sources of personalization insights
1. Deductive
How can general theories apply to this situation?
2. Inductive
Which specific behaviours of my users are general insights?
3. Self-selected
How can I gather information directly from my users?

Learn more with the free
Mastering Personalization guide
Download now:
www.WDRF.NL/personal
Or email: iwant@WiderFunnel.com

Operationalizing
Personalization
Hudson Arnold
Strategy Consultant, Optimizely
@hudson_arnold
hudson@optimizely.com

Retention & Upsell
Bundle Strategy
Value Propositions
START BY REVISITING YOUR FUNDAMENTALS
Personas
Customer Journey Model
Promotions

LAYER ON MORE TACTICAL AUDIENCES
LEFT- & RIGHT-BRAIN
QUALITATIV
E
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
Wantsadiscount
Preferenceforaspecific
producttype
High-Propensity
Needsapush
VIPMember
UrbanLocation
ShoppingforaGift
Audience
Characteristic

PRIORITIZE, PRIORITIZE, PRIORITIZE
PURSUE 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

Step 1:
Create Your
Audience Strategy

Rules Based vs. Automated Personalization
Tactics

Rules Based vs. Automated Personalization
Maturity Scale

Achieve ‘Deep Reach’ With Campaign Design
Multi-Threaded Campaigns

PHASED INTEGRATION OF PERSONALIZATION
CRAWL, WALK, RUN
0-12 weeks
BuildPhase 1
months 12-24
BuildPhase 3BuildPhase 2
months 3-12

Platform Implementation
Simple Audiences
Starter Campaigns,
Limited Integration of
Testing + 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
Bu
ild
Phase 1
CRAWL, WALK, RUN

Integration with 1st & 3rd
Party Data
More Campaigns
Integration of testing &
Personalization workflows
More advanced use cases
Phase 3 Planning
Bu
ild
Phase 2
months 3-12
CRAWL, 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
Bu
ild
Phase 3
months 12-24
CRAWL, 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

Delivering profitable ‘A-ha!’ moments everyday.™

Strategic personalization: Better process, better insights, better sales.

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