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Monetate – A Multivariate Platform for Ecommerce

IRCE 2012 log 8th annual Internet Retailer Conference and Exhibition, by far the world’s largest e-commerce event,

held at Chicago’s McCormick Place West on June 5-8, 2012

One of the great parts of a trade show is being able to quickly see trends. You can see what companies are going after similar markets. You can see what companies are just getting starting in meeting a customer’s need and who is well along the development cycle. Internet Retailer-2012 gave me another chance to see an industry developing. Monetate is a single company represents new trends multivariate

Monetate is a single company represents new trends multivariate ecommerce platform optimization.

At IRCE 2012 (Internet Retailer Conference and Exhibition) at Chicago’s McCormick Place this week, I was able to how the cost of computing continually dropping is affecting how we merchandise (1st on line, but you know the wisdom will be carried to bricks and mortar stores as well).

One of the booths I got to see was Monetate. What stood out for me was how much computing is being done in real time  and in an anticipatory fashion. In essence,

monetate's logo of a human puzzle piece and the name monetate registered trademark

Monetate from Pennsylvania

they are taking your shopping cart system (which may in all likelihood is probably a very large collection of SKU’s, Descriptions, media assets) and creating variations of it for all sorts of testing. They can test –  by what city you come from, or if it is raining today. They can test or present –  based on your past history with you, or how close you are to a Walmart. They can even handle compound testing: if you are a repeat customer on a rainy day, in a media market that is inexpensive, and there is a festival this weekend in town.

Watching the monetate’s demo and remembering their presentations, I am reminded of when I used to run scenario’s and forget to limit the sample size to ‘reasonable

Mainframe days when computing cycles were expensive and measured for chargeback to departments

When computing cycles were expensive

number’.  I would get my manager bringing my report the next day, He would show me the chargeback cost (in the mainframe days) that exceeded both my and my manager’s cost for a year. Monetate’s system lets me create these scenario’s on an ongoing basis either as test, or production – in real time.

What I see here is the magic of being able to move as much computing power before the web customer shows up. It also is able to quickly identify what the identity of each visitor is.  This allows responding much more like a human store clerk would – making many decisions with ease because once you know the ‘rules’ they are easy and ‘obvious’. A store clerk seeing a visitor show up on a long skateboard is probably more interested in snowboarding then ski’s or toboggans. A customer wearing a $4,000 watch is probably not looking at the costume jewelry in the corner of the store. These snap judgements are what allow us to determine which of the thousands of cars we pass on our way to work will be a problem, and which are just going along in our lane that can be ignored safely.

We have been trying to get computers to have this same ‘artificial intelligence’ for decades. And we are still a long way from AI. But increasingly, we are able to in small domains, define experiments that let us test and tweak. Testing what is the best way to present information or experiences for website visitors that meet their needs on their terms. Monetate is helping that become incredibly easier for online shopping.

One of the other keys I see in Monetate (and similar tools), is the ability embrace Lean Startup methodology. The concept of iteration. The key is understanding that now that your cost of experimentation is lower than analysis, the best approach is lowest cost in revenue optimizing is different. When each computer batch ran on a mainframe cost thousands of dollars and days of time, it was far more effective to spend more time ‘bench testing’ ideas. We would sit around and using human power to determine the best approach. But, when a computer can now not only check your theory, but create a method to retest against different data (be it a Texas visitor over an Oregon visitor, or this month’s customers over last quarter’s customers), it is poor use of resources (especially human) to think about what the results are, and ‘just do it’. Let the system or computer or software do the testing and provide the results.

The challenge will be not in saving the last CPU cycles to run one more test, but how to let our creative juices loose again to see how to continually improve the solutions we are trying to build. One of the big challenges for many in ‘corporate’ is to understand that website visitors are individuals. The market of potential customers need to (as much as possible) be treated as individuals. As we learn to look at our visitors as having different mindsets, often determined by factors we can identify, we will be able to create better experiences for our customers.

There is a whole other dimension of visitor privacy that enters into this, but I am not going to tackle that one today.

Logo for Internet Retailer Convention and Exhibit 2012 in Chicago IL


As usual, monetate’s solutions are an incredible toolset that lifts one burden from the ecommerce manager allowing a much larger responsibility to rise to the top –  looking at the world from the customer’s perspective. It was never – not the top priority, but now, there are a many fewer excuses as to why we cannot focus on the customer’s view point.
What would you test on your website, if there were no limitations?

September 21, 2012 Posted by | Chicago, Large SKU site, tools, Uncategorized | , , , , , , , | Leave a comment

Are You Getting Paid Fairly? UBM’s IT Salary Survey for 2012

Those of you working for others, or considering hiring others, probably are interested in what the going ‘rate’ is. How much will it cost to create your eCommerce channel? How much will it cost to maintain my help desk and answer all those questions? How much should I pay my CIO (chief information officer) to herd all the parts of my technology infrastructure to manage my website and more?

Well the short answer is either ‘it depends’ or ‘as much as you want to pay’. But neither is real helpful without context. So I find it helpful to see what other companies are doing with their IT staff and management. In the information management industry UBM has created a long term name for themselves as understanding what is happening in the IT world with their variety of publications including Information Week, and analysis services. Granted their bias is heavily towards enterprise work, but they try to segment their data whenever possible. They have been doing annual surveys for quite a while, and recently their 2012 salary survey came out.

To get your own copy of the survey in PDF go to: here or here  UBM’s form is a quick lead collector with the chance to register for some useful webinars.

The survey is based on over 1,300 responses in large and small organizations, with much slicing and dicing to allow you to see how your staff matches. But it also helps to understand the mindset of employees, and to see how other businesses structure their IT teams. That is part of what I find useful in reviewing the survey and looking at it across the pages. Looking at regional differences and major city compared to a region has some insights as well.

I was most focused on some friends who have vast experiences, but are currently working in the help desk area. Here are some of the insights I collected from the data (all numbers are in thousands of US dollars per year):

  • Typically, salaries are 1% or 2% more then last year in information technology after a flat 2011.
  • To double your salary – jump from help desk work to management. Help desk is always viewed as the lowest common demoninator, and is paid accordingly low. If you want to increase your pay, look for something ‘simpler’. Or at least something that is labeled differently.
  • page 41 – Seattle average staff base $99k vs. Chicago $88k. Seattle is probably offset by higher total package with more benefits and bonus.
  • page 43 – Midwest average staff base is $79k vs. Pacific region $92k (after ‘subtracting’ average for Chicago, means that outside of Chicago (all the way north to Kenosha) is way lower.
  • page 45 – Manager pay though the swing in higher pay switches in the Chicago dual with Seattle. With Chicago, manager average is $118k for base salary vs. Seattle $110k. This may also incorporate that Seattle may tend to have more ‘working’ programming managers rather then ‘stand alone’ management, creating almost a hybrid rate (lower pay for split duties).
  • page 49 – 73% expect 401k match next year.
  • page 51 – 48% attended paid company training last year.
  • page 59 – shows how many companies that IT people have been at. 29% have worked at 3 or more companies in last 10 years. It is not clear how many have been with multiple companies while sitting at the same desk, but corporate takeovers changed the sign at the parking lot. I once worked for 3 companies in the space of 4 months at the same desk.
  • page 82 – less then half have a bachelors degree (or higher). The percentage is even lower if you are in management.
  • page 85 – Many people are working in  jobs with companies with annual revenue under $50million – 38% of jobs are with these smaller companies. Not all jobs are enterprise jobs.
  • page 87 – 20% of jobs are in companies with less then 100 total employees (total, not just IT).
  • page 88 – shows which industries tend to pay the most – in terms of total packages non-profit is lowest. In spite of what Governor Walker says, government is 3rd lowest after education (which is still typically a government job). For those that feel that government employees with defined benefits packages should look at these numbers. This goes against your pension frustration. It infers that government employees are taking a $15-30k cut in pay per year for the better pension. The time value of money is an interesting analysis.  Is it fair or not?  The defined benefits of government positions is in contrast to 75%  of all IT employees expect a 401k program with an employer match on page 49.
Here is some older salary suveys:
Of course Salary.com is another great resource for looking at ‘how much it costs’ but this direction is also helpful, with a background in the industry older then Salary.com has been around.

How does this survey compare to your experiences? Do you find any surprises, please share in the comments section?

June 19, 2012 Posted by | Chicago, Uncategorized | , , , , , | 1 Comment

IRCE 2012 – MONETATE – an multivariate platform for ecommerce site

IRCE 2012 log 8th annual Internet Retailer Conference and Exhibition, by far the world’s largest e-commerce event,

IRCE2012 held at Chicago’s McCormick Place West on June 5-8, 2012

One of the great parts of a trade show is being able to quickly see trends. Monetate is a single company represents new trends multivariate ecommerce platform optimization.

At IRCE 2012 (Internet Retailer Conference and Exhibition) at Chicago’s McCormick Place this week, I was able to how the cost of computing continually dropping is affecting how we merchandise (1st on line, but you know the wisdom will be carried to bricks and mortar stores as well).

One of the booths I got to see was monetate. What stood out for me was how much computing is being done in real time and in an anticipatory fashion. In essence they are taking your shopping cart system (which may, well is probably, very large) and creating variations of it for all sorts of testing. They can test by what city you come from, or if it is raining today. They can test or present based on your past history with you or how close you are to a Walmart. They can compound testing if you are a repeat customer on a rainy day in a media market that is inexpensive.

monetate's logo of a human puzzle piece and the name monetate registered trademark

Monetate from Pennsylvania

Watching the monetate’s demo, and remembering their presentation, I am reminded of when I used to run scenarios on large multimillion dollar data centers, and forget to limit the sample size to ‘reasonable number’. I would get my manager bringing my report the next day (reports only printed a few times a day, but when you busy the machine all night it takes a while) showing me the chargeback of the mainframe’s cost that exceeded both my and my manager’s cost for a year.  Monetate’s system lets me create those scenario experimentation on an ongoing basis either as test or production – in real time.

What I see here is the magic of being able to move as much computing power to SaaS before the web customer shows up. It also is able to quickly identify what the identity of each visitor is.  This allows responding much more like a human store clerk would. Making many decisions with ease because once you know the ‘rules’ they are easy and ‘obvious’. A store clerk seeing a visitor show up on a long skateboard is probably more interested in snowboarding then ski’s or toboggans. A customer wearing a $2,000 watch is probably not looking at the costume jewelry in the corner of the store. These snap judgements are what allow us to determine which of the thousands of cars we pass on our way to work will be a problem, and which are just going along. It is a wondrous marvel of evolution to survive in the complex world we live in. And computers can just do a fraction of it.

We have been trying to get computers to have this same ‘artificial intelligence’ for decades. And we are still a long way from it. But increasingly, we are able to in small domains define experiments that let us test and tweak what is the best way to present information or experiences for website visitors that meet their needs on their terms. Monetate is helping that become incredibly easier for online shopping.

One of the other keys I see in monetate (and similar tools), is the ability embrace Lean Startup methodology. The concept of iteration. The key is understanding that now  that it your cost of experimentation is lower then analysis, the approach that is lowest cost in optimizing is different. When each computer batch run cost thousands of dollars and days of time, it was far more effective to spend more time ‘bench testing’ ideas. Sitting around and using human power to determine the best approach. But when a computer can now not only check your theory, but create a method to retest against different data (be it Texas visitor over Oregon visitor, or this months customers over last quarters customers), it is poor use of resources (especially human) to think about what the results are and ‘just do it’. Let the system or computer or software do the testing and provide the results.

The challenge will be not in saving the last CPU cycles to run one more test, but how to let our creative juices loose again to see how to continually improve the solutions we are trying to build. One of the big challenges for many in ‘corporate’ is to understand that website visitors are individuals. They need to as much as possible be treated as individuals. As we learn to look at our visitors has having different mindsets, often determined by factors we can identify, we will be able to create better experiences for our customers.

There is a whole other dimension of visitor privacy that enters into this, but I am not going to tackle that one today.

Logo for Internet Retailer Convention and Exhibit 2012 in Chicago IL


As usual, monetate’s solutions are an incredible toolset that lifts one burden from the ecommerce manager allowing a much larger responsibility to rise to the top –  Looking at the world from the customer’s perspective. It was never not the top, but now there are a whole fewer number of excuses as to why we cannot focus on the customer’s view point.
What would you test on your website, if there were no limitations?

June 13, 2012 Posted by | Chicago, Large SKU site, Uncategorized | , , , , , , | Leave a comment

IRCE 2012 – Internet Retailer Conference and Exhibition tradeshow at Chicago’s McCormick Place

IRCE (Internet Retailer Conference and Exhibition) is over for 2012.

http://irce.internetretailer.com/2012/exhibits/

Learning more in person then online

To all who came to IRCE2012, THANKS for visiting Chicago, the local economy appreciated your visit. I appreciated your ideas and the opportunity for networking in my backyard.

Even after all these years in technology, it still amazes me to see how technology continues to move quickly in a few different directions. So while I will be highlighting some different companies I met or got reaquanted with in the near future here at SEODamian in future posts,  let me share what I see were some major trends here from the show.

One of the big values I find in going to trade shows is the ability to compare and contrast different vendors in the same hour. The challenge with other solutions for comparing (trade journals, industry reviews, analyst reports) is that they often span data that makes comparisons irrelevant. They are X’s last quarter’s version compared to Y’s next quarter’s beta version. You still get the same issue at a tradeshow, but you can typically sniff out the game and get the real scoop on what the 2 companies are at today, and compare to 3 other similar solutions.  Some of the key trends I saw in Internet retailing are:

  • Prices are dropping. No big change there, except the rate they continue to drop. Typically not the same product at the same company, but by a new competitor creating most of the functionality of an existing solution and more for a lower price. Be it Chat and chat management (LivePerson look out, LogMeIn and others are looking to eat your lunch), survey tools, Addon’s to Magento (shopping cart platform), shipping auditing (no minimums needed here), affiiliate management, flash sales tools (keep it all in house or partner) and more.
  • SaaS is the trend. The cost to distribute code to customers, and deal with your internal data center/stack complexities is too expensive for most tool creators. It is far easier for them to increase staff to keep 1 (or 2) data center up and going, then trying to guess how you (the customer) tried to make your data center secure and how you dealt with your specific legacy issues.  The test bed is far easier to set up (if they are using AWS-Amazon Web Services, it is about 3 command lines to generate ‘another’ test bed). If you as a retailer can’t deal with SaaS or it’s API, look for adding at least one 0 (zero) to your cost in purchase price, and far more in TCO.
  • Big data is here. Small startups need a credit card with a few dollars open on it to get a billion dollar data center (Amazon Web Services) to build ‘rock hard’ services. The cost of AWS is low enough that the ability to deal with incredible amounts of data in real-time changes what is being deployed as solutions. This shows up at the consumer level as presorted and pretargeted for their needs, not brood strokes. No longer is confirmation that a card number may be valid a real number good enough. It has to be validated that it belongs as a charge, not reported stolen and has the proper credit limit. 
  •  The is no one stop shopping. The amount of tools to run a successful ecommerce site continues to grow. From the need to change pricing rapidly on one or all your SKU’s, to deploying across multiple channels (store, Amazon, eBay, Affiliate, traditional site, Facebook, ShopEngines) you need a collection of tools that is reminiscent of the stacks of apps in the 70’s and 80’s. The big difference, they are best not home developed, and often hosted in and out of house.
  • Change is now often measured in weeks and months rather then years for software deployment. If you don’t like what you see today, what a quarter and redo your RFP (Request for Proposal). But monitor the products and community reaction in the meantime.

There was a lot more I saw, but 500 booths is hard to summarize in a few lines, so more to follow in the next posts.

June 8, 2012 Posted by | Chicago, hosting, Large SKU site, resources, SEM Industry, Uncategorized | , , , , , , , , , | Leave a comment

Looking to network in Chicago?

While at the BizNetExpo on Friday, I found another group in Chicago – SMCC

Social Media Club Chicago

Social Media Club  [SMC] is a worldwide organization, with local chapters, that serves as connecting organization for anyone interested insocial media. Membership is free and open to all levels, including beginners. Chicago’s SMC chapter, launched in October 2008, presents events that mix socializing, networking and learning. SMC Chicago events include:

  • the future of social media with Jason Falls;
  • Brand U.0 with David Armano;
  • social media meets Chicago media;
  • BtoB and social media; and
  • women, blogging and social media.

Join us on Facebook http://smcchicago.org; LinkedIn http://budurl.com/smcchicagolinkedin or twitter http://twitter.com/smcchicago. ”

I have not been to them yet, but I heard the founder yesterday and she seemed impressive enough to put this event on my calendar.

October 23, 2010 Posted by | Blogging, Chicago, Community, Social Media, Uncategorized | , , , , , , | Leave a comment