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!