Peer-Powered Semantics
Recommendations & Social Searchvia The Wisdom of Invisible Crowds™
Jack Jia
Founder & CEO
Baynote
Baynote, Inc. --- Confidential and Proprietary
Baynote in a Nutshell
Company– Pioneered Recommendations in 2005– 100 eCommerce, Media & Enterprise customers– AlwaysOn Top 100 Company (2007 & 2008)– KM World 100 (2008), Red Herring 100 (2008)
Technology– Recommendations & Social Search
• Breakthrough UseRank™ patents
• Powered by The Wisdom of Invisible Crowds™
– Benefits• 40% Lead Lift
• 20% Net Revenue Lift (40% profit lift)
• 400% Engagement Lift
• 1000% Search Lift
Model– High Return, Little Risk– Works with any business site & search engine– On-demand; go live in days
Baynote, Inc. --- Confidential and Proprietary
Father
Son
Husband
CEO
Brother
Engineer
You Don’t Know Jack
What to recommend
?
Don’t get too personal, instead,TARGET INTENT & CONTEXT!
Baynote, Inc. --- Confidential and Proprietary
Why You Don’t Need to Know Jack!
Individuals are NOT predictable because of different Mental contexts & intents Interests & personas Up-brings & experiences
Under niche context or intent, we all become very predictable.
People are animals of context! It’s biological!
Baynote, Inc. --- Confidential and Proprietary
Social Science & Brain Science Has Proven
1. Human are less predictable at an individual level
2. Peers are very predictable within the peer context
3. Current intent / context drives attention and interest
Targeting & personalizing individuals are the past, and invade privacy
Web business is 2-way interactive and intent driven!
Problem
Baynote, Inc. --- Confidential and Proprietary
83% fail*
(lost or abandoned)
* The Wall Street Journal, 1/24/06
- Email- Online Ads- Press / Media- Offline / TV / Radio
Acquisition Cost Site Experience
Search &Navigation
Poor Search & Navigation Costs You
8 of 10 Visitors are Abandoning Websites
Your Competitors
• Lost business
• Low conversion• Low AOV• Low engagement
Online Value
$
Support Center
The Big Bypass• Costly calls & emails• Upset customers
Baynote, Inc. --- Confidential and Proprietary
The Useful Page
Measuring the Loss – Navigation
6 clicks on average to find useful content 95% visitors abandon a site within 3 clicks Yields poor conversion rate
Link Link Link Link
Link
Link
Link
Link
Link
Link
Link
Link
12
34
56
95% of visitors are gone!
Potential Customer
Your Competitors
• Lost business
Baynote, Inc. --- Confidential and Proprietary
Measuring the Loss – Site Search
Conversions defined as: Orders or transactions Downloaded presentations or whitepapers Completed registration forms
1 100 %
2 63.8 %
3 47.7 %
4 34.2 %
5 26.4 %
6 22.4 %
7 16.1 %
8 13.1 %
9 9.2 %
10 9.1 %
11 …
12 …
13 …
14 …
First Page ofSearch Results
Second Page ofSearch Results
52% Lost
91% Lost
95% Lost
Search Rank Conversion Potential
Atlas Search Rank Report– Research on 41,460,000 clicks, 408,000 unique
keywords on Google and Yahoo
The Long Tail: Quick Bucks or Quick Sand?
- Paradox of Choice
Baynote, Inc. --- Confidential and Proprietary
The Dream & Nightmare of Long Tail ProductsS
ale
s
Products ranked by popularity
Low Profit Margin
Baynote, Inc. --- Confidential and Proprietary
Solution: Social Science Meets Engineering
Invisible CrowdsActions > WordsWhole > Sum of partsReal-time feedback
Like Minded PeersCrowds > Expert Context sensitive
Where are the incentives?
Sell 1 of manyMany small yetlucrative segments
But how?
Baynote, Inc. --- Confidential and Proprietary
Baynote Technology
entry trails
time spentvirtual print
virtual bookmarks
exit trails…
links queries
mouse movement
page refers
page sizes
PEERS negative experience
Implicit, emergent behaviors
Content Gaps
Visitor Clubs
Usage Reports
Site Owner
Real-time Fully Automated
Social Search
Recommendations
Customer Examples
Baynote, Inc. --- Confidential and Proprietary
Recommendations for eCommerce
1 Similar ProductsComparison shoppingUpsellBased on affinity or purchases
2 Accessory ProductsSee associated productsIncreased order sizeSerendipitous interest or purchases
3 Most PopularProducts with greatest appealCross-site or within categoriesReduced site abandonment
4 AdGuide - Intent-Driven Landing Pages Recommendations based on web search“Greeted at Door”“Concepts to Brands” - 7x increase
5 Social SearchUseRank™ & Implicit LearningIntent Driven & AdaptiveImplicit FolksonomyWorks with Endeca, FAST, any engineSupport Audio, Video & all Content Types
2
14
5
3
Baynote, Inc. --- Confidential and Proprietary
eCommerce Example: US Appliance
Profile
Goals /Challenges Results
• Double digit conversion increase
• Double digit revenue increase
• Online since 1999, among the largest national appliance retailers
• 10,000 SKU’s
• Long Tail site caters to the high-end buyer
• Provide recommendations beyond most popular
• Increase online sales conversions and revenue
Baynote, Inc. --- Confidential and Proprietary
Direct Revenue Lift!
Baynote, Inc. --- Confidential and Proprietary
Media Content Recommendations – Head and Tail
“Head” recommendations broadly interesting broadly targeted
“Tail” recommendations niche content highly-targeted
Baynote, Inc. --- Confidential and Proprietary
Normalized A/B Testing
Total Sessions Total Pageviews Pageviews /Session Engagement /Session
Non-Baynote User 206,782 893,719 4.32 6.51 minutes
Baynote User 36,236 291,836 8.05 12.47 minutes
Total Baynote Lift + 86% + 91%
Total Site Exposure + 17%
Baynote, Inc. --- Confidential and Proprietary
Support Person of the Year – You!
Profile
Goals / Challenges
• 2.6 Billion revenue; 8,000 employees, founded 1983
• 14 million taxpayers
• Deliver the marketing & sales promise
• Maximizing the potential of self-service
• Right content in front of the user / findability
Baynote, Inc. --- Confidential and Proprietary
TurboTax Support Lifts
New Platform + Baynote Social Search = 73% total success rate
• 2x improvement over late 2007
Baynote paid for itself rapidly in labor savings alone, by no longer hard-coding recommendations
Without Baynote With Baynote Net Increase
Keyword Search 15% Keyword Search 15% n/a
+ manual tuning 3% + Baynote Social Search 17% 600%
18% 35% 100%
2007
2008
Baynote, Inc. --- Confidential and Proprietary
Baynote Social Search: Winter Vacation
Baynote, Inc. --- Confidential and Proprietary
Get Immersed – Video Recommendations
Engaging
Self-maintaining
Interest-driven
Baynote, Inc. --- Confidential and Proprietary
Get Social – Discover Content with Topic Clouds
Most engaging “topics” right now
Drives content discovery
All implicit, no user tagging required
A Customer-Run Business Platform
Baynote, Inc. --- Confidential and Proprietary
VignetteIBM CommerceBEA / Oracle
ATGSIsAgencies
ResponsysCheetahMailConstantContact
iProspect360iiCrossing
VignetteKanaRightNow
CognitorSIsAgencies
IBMMercadoHome Grown
OmnitureCoremetricsGoogleTumri
IBM CommerceATGHome Grown
GoogleEndecaAutonomyFast
BazaarvoicePowerReviews
Thank You!