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BIG DATA and the Customer Experience P E T E R D E G O S Z TO N Y I
Z A N K A CO N S U LT I N G
A P R I L 2 8 , 2 0 1 5
A S Q P R ES EN TAT I O N
Introduction Why Big Data now
◦ E-Commerce Imperative
Some definitions ◦ Big Data
◦ Customer Experience
Customer Experience on the Internet ◦ Ho it’s do e
What you a do a out it to prote t your Pri a y
How to improve your website Presence ◦ An analytical process
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 2
The world of the Internet Global in Scope and still growing
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 3
Growth of Commerce on the Internet U.S. digital advertising revenue rose 16% to $49.5 billion in 2014 compared with the prior year... The report, prepared by PricewaterhouseCoopers U.S., shows that fourth-quarter 2014 numbers reached $14.2 billion -- up 17% from $12.1 billion in the fourth quarter of 2014.
Hidden in the numbers: social media advertising jumped 57% to $7 billion in 2014.
During the second half of the year, social-media revenue was $4.1 billion, with the increase reflected in the 55.0% compound annual growth rate of social from 2012 to 2014, as a result of years building up social networks.“
"the IAB data ultimately makes clear to us once again that Google and Facebook continue to dominate the industry, as the two companies capture more than 40% of non-search digital advertising, and more than $30 billion, or 60% of the industry, if we include search, as well."
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 4
http://www.mediapost.com/publications/article/248247/iab-digital-ad-revenue-
approaching-50-billion-an.html
On Line Marketing Strategies Here are the top 7 predictions of what advertisers can expect — and must prepare for — in 2015:
1. Mobile share will grow to 40% of eCommerce transactions globally.
2. Cross-device marketing will be real and drive significant value for advertisers.
3. Programmatic buying will drive rapid growth in native advertising.
4. Brick-and-mortar retailers will focus even more on online strategies.
5. Mobile apps focus will shift to re-engagement.
6. Automated ad formats will offer even greater flexibility.
7. Acquisitions and consolidation will continue to intensify in the ad-tech industry.
The global eCommerce industry saw impressive growth in 2014 with goods and services worth $1.5 trillion bought by shoppers via desktops, tablets and smartphones.
Advertisers are now spending an increasing proportion of their marketing budgets on Internet advertising.
This ad spend is forecast to surpass $160 billion in 2015, of which more than $58 billion will be spent on Display advertising. (Source: eMarketer)
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 5
http://www.criteo.com/media/1432/criteo-ecommerce-industry-outlook-2015.pdf
The Star of the Show – Big Data Big data is a broad term for data sets so large or complex that traditional data processing applications are inadequate.
Challenges include analysis, capture, curation, search, sharing, storage, transfer, visualization, and information privacy.
The term often refers simply to the use of predictive analytics or other certain advanced methods to extract value from data, and seldom to a particular size of data set.
http://en.wikipedia.org/wiki/Big_data
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 6
Big Data Video
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 7
Is Big Data a Buzzword? Big Data Explained From <https://www.youtube.com/watch?v=OYJ241DTSVg>
10 Surprising Ways Your Daily Life Is Feeding the Big Data Beast
Snail Mail
Driving
Employee Badges
Smart Meters
Electronic Medical Records
Mobile Maps
Shopping Online
Music Streaming Services
Cable Set-Top Boxes
Fitness Bands
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 8
Customer Experience Customer experience is the cumulative impact of multiple touchpoints over time, which result in a real relationship feeling, or lack of it.
Beyond Philosophy: A customer experience is an interaction between an organization and a customer as perceived through a customer’s conscious and subconscious mind. It is a blend of an organization’s rational performance, the senses stimulated and the emotions evoked and intuitively measured against customer expectations across all moments of contact.
Wikipedia: Customer experience (CX) is the sum of all experiences a customer has with a supplier of goods and/or services, over the duration of their relationship with that supplier. This can include awareness, discovery, attraction, interaction, purchase, use, cultivation and advocacy. It can also be used to mean an individual experience over one transaction; the distinction is usually clear in context.
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 9
Customer Experience Adam Richardson, Frog Design: It is the sum-totality of how customers engage with your company and brand, not just in a snapshot in time, but throughout the entire arc of being a customer.
SAS: Customer experience is defined as your customers’ perceptions – both conscious and subconscious – of their relationship with your brand resulting from all their interactions with your brand during the customer life cycle.
Forrester Research: “How customers perceive their interactions with your company.”
https://hbr.org/2013/09/the-truth-about-customer-experience/ar/1
http://futurecmo.org/2013/10/31/definition-for-customer-experience/
http://en.wikipedia.org/wiki/Customer_experience
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 10
Personalization Personalization is a technique that
◦ Alters the prese tatio of a e site’s o te t to at h a spe ifi user’s preferences.
◦ At its most advanced, it is about delivering a truly custom experience to each individual user.
Companies with personalization strategies are: ◦ Engaging consumers with relevant content and customized experiences ◦ Increasing the likeliness of them converting and becoming repeat
visitors. ◦ Consumers who engage with personalized recommendations convert,
on average, 353 percent more frequently
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 11
http://www.websitemagazine.com/content/blogs/posts/pages/personalization-for-the-digital-consumer.aspx
How are website visits personalized Websites collect data from every visitor and a multitude of other sources.
It is analyzed and processed via Big Data predictive analysis to deliver the personalized message.
Data is collected from a wide variety of sources: ◦ Cookies (currently the main source of web data) ◦ Social media ◦ Social login ◦ Browsing data ◦ Permission marketing
◦ Registration forms
◦ Privacy agreements
◦ Data mining ◦ Trackers
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 12
What is a Cookie - Video
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 13
https://www.youtube.com/watch?v=IPQhME1UYQU
Cookies - Wikipedia Definition A HTTP cookie (also called web cookie, Internet cookie, browser cookie or simply cookie, the latter which is not to be confused with the literal definition), is a small piece of data sent from a website and stored in a user's web browser while the user is browsing that website. Every time the user loads the website, the browser sends the cookie back to the server to notify the website of the user's previous activity.[1] Cookies were designed to be a reliable mechanism for websites to remember stateful information (such as items in a shopping cart) or to record the user's browsing activity (including clicking particular buttons, logging in, or recording which pages were visited by the user as far back as months or years ago).
Although cookies cannot carry viruses, and cannot install malware on the host computer,[2] tracking cookies and especially third-party tracking cookies are commonly used as ways to compile long-term records of individuals' browsing histories—a potential privacy concern that prompted European[3] and U.S. law makers to take action in 2011.[4][5] Cookies can also store passwords and form content a user has previously entered, such as a credit card number or an address.
Other kinds of cookies perform essential functions in the modern web. Perhaps most importantly, authentication cookies are the most common method used by web servers to know whether the user is logged in or not, and which account they are logged in with. Without such a mechanism, the site would not know whether to send a page containing sensitive information, or require the user to authenticate themselves by logging in. The security of an authentication cookie generally depends on the security of the issuing website and the user's web browser, and on whether the cookie data is encrypted. Security vulnerabilities may allow a cookie's data to be read by a hacker, used to gain access to user data, or used to gain access (with the user's credentials) to the website to which the cookie belongs (see cross-site scripting and cross-site request forgery for examples)
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 14
http://en.wikipedia.org/wiki/HTTP_cookie see also <http://computer.howstuffworks.com/cookie1.htm/printable>
Secret Life of a Website
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 15
http://easteuropeanfood.about.com/od/maincourses/r/StuffedPeppers.htm
Ads
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 16
Trackers
New Ads
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 17
Trackers
Ghostery found 104 trackerseasteuropeanfood.about.com5min MediaWidgets, Video Player
[x+1]Advertising
Accuen MediaAdvertising
Acuity AdsAdvertising
AdActionAdvertising
Adap.tvAdvertising
AddThisWidgets, Social
AdformAdvertising, Analytics
AdGearAdvertising, Behavior Tracking
AditionAdvertising
AdoTubeAdvertising
AdPlanAnalytics
ADTECHAdvertising
PinterestWidgets, Social
ProvenPixelAdvertising
PubMaticAdvertising
PulsePointAdvertising
QuantcastAdvertising
RadiumOneBeacons, Behavior Tracking
Resonate NetworksAdvertising
Right MediaAdvertising
Rocket FuelBeacons
RubiconAdvertising
RUNAdvertising
Sailthru HorizonBeacons
ScoreCard Research BeaconBeacons, Analytics
SekindoAdvertising
Simpli.fiAdvertising, Segment Data, Behavior Tracking
SiteScoutAdvertising
https://www.ghostery.com/en/
Rubicon
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 18
Rubicon Video
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 19
http://www.rubiconproject.com/advertising-automation-cloud/
How do those ads Get there? Retargeting allows you to sho ads dire tly to isitors after they’ e left a site or la di g page, providing multiple shots at the conversion
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 20
Real Time Bidding
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 21
Real time bidding ◦ Real time bidding (RTB) refers to the practice of buying and selling display ad impressions through ad
exchanges in real time and an impression at a time.
◦ Buyers - agencies, advertisers and some networks - are usually connected to the ad exchange by the way of demand side platforms. The DSP automatically makes the decision to buy according to different parameters entered by the advertiser (price, target, ad unit, etc).
◦ Sellers - publishers and some networks - are usually connected to the ad exchange through a seller side platform (SSP) upon which they deliver ad impression inventories and set floor prices.
◦ Sometimes, real time bidding for premium inventory is done on private ad exchanges.
◦ According to different studies, RTB was making up approximately between 30 and 40% of total display advertising at the end of 2015.
◦ For the ad market, real time bidding is a way to reach market balance and to reduce costs and processing times. Through algorithms used on DSPs and ad exchanges it also considered by buyers as a way to optimize campaign effectiveness.
Real time bidding video
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 22
Real time bidding Review
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 23
What Can you do about it? In one word - othi g
Many websites need cookies to work to optimize the visitors experience
◦ Amazon
◦ Shopping sites
◦ Analytics
Options ◦ Get a good anti virus / anti spyware program
◦ Practice safe browsing
◦ Use private Browsing option which will not save cookies
◦ Clear cookies each time you close your browser
◦ Block third part cookies
◦ Use Ghostery to block certain trackers
◦ Do not log onto sites using your social media Log in ID
Cookie Limitations ◦ Privacy concerns ◦ Limited reach (mobile devices) ◦ Poor cross device tracking
Cookie Alternatives for Tracking: ◦ Zombie Cookies
◦ IP address[edit]
◦ URL (query string)[edit]
◦ Hidden form fields
◦ window.name
◦ HTTP authentication
◦ Identifier for advertisers
◦ ETag
◦ Web Storage
◦ Cache
◦ Browser fingerprint (Canvas Fingerprint)
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 24
https://gigaom.com/2014/03/29/as-advertisers-phase-out-cookies-whats-the-alternative/
http://mashable.com/2014/07/21/impossible-block-tracking-tool/
Zombie Cookie A zombie cookie is
◦ any HTTP cookie that is recreated after deletion from backups stored outside the web browser's dedicated cookie storage.
◦ It may be stored online or directly onto the visitor's computer, in a breach of browser security.
◦ This makes them very difficult to remove.
◦ These cookies may be installed on a web browser that has opted to not receive cookies since they do not completely rely on traditional cookies.
When implemented by a website, evercookie stores a user ID and cookie data in not two, not three, but eight different places—with more on the way.
◦ It works cross-browser, too—if the Local Shared Object cookie is intact, evercookie can spread to whatever other browsers you choose to use on the same machine.
◦ Since most users are barely aware of these storage methods, it's unlikely that users will ever delete all of them.
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 25
http://en.wikipedia.org/wiki/Zombie_cookie
http://arstechnica.com/business/2010/09/22/evercookie-escalates-the-zombie-cookie-war-by-raising-awareness/
Questions? WE ARE NOT FINISHED YET
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 26
How to Improve Your Web Presence The pressure is on to improve your corporate presence on the Internet
There are virtually millions of companies vying for your hard earned advertising dollar
◦ How do you know what you need?
◦ Are you being sold more than what you can afford?
◦ Is it providing the ROI you were promised?
Before you engage an online marketing organization you need to know what you want to achieve
◦ Utilize an analytical process to determine your needs
◦ Get independent help
◦ Devise a basic plan
◦ Understand what you really want and measurable outcomes
◦ Map what the marketing company offers to your objectives
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 27
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 28 28
Objectives
Target Users &
Stakeholders
Website Outcomes
External
Impacts
Measures Competitive
Impacts
Input
Sources
Defining your project What
◦ Objectives mapped to corporate goals
◦ Purpose of initiative - why are you doing this
◦ Outcomes - what would happen if goals are achieved
◦ What action can you take to improve
Who
◦ Who are your stakeholders
◦ Include both external and internal groups impacted
◦ Why would they be interested in outcome
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 29
Environmental Assessment Inputs
◦ Where does the information come from
◦ Who provides it
◦ Issues around the source of information
External Impacts ◦ What can you control and what can you not control
◦ Regulations
◦ Environment
Competitive impacts ◦ Internal and external
◦ Resources
◦ Competitors
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 30
Outcomes Identify outcomes
◦ Outcomes are the desired results that the website should produce based on the objectives for the organization
◦ Outcomes should be measurable
Develop an Improvement plan ◦ The analysis should reveal actions that can be taken to reach your objectives
Validate ◦ Confirm that the changes did achieve your objectives
Repeat ◦ Continuous improvement
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI 31
Thank You
Any More Questions? Contact
Peter de Gosztonyi
◦ Zanka Consulting
◦ www.Zanka.ca
◦ Email: [email protected]
April 28, 2015 ASQ PRESENTATION PETER DE GOSZTONYI ZANKA CONSULTING 32