Peer-Powered Semantics Recommendations & Social Search via The Wisdom of Invisible Crowds™

1. Jack Jia Founder & CEO Baynote Peer-Powered SemanticsRecommendations & Social Searchvia The Wisdom of Invisible Crowds™

2. 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

3. You Don’t Know Jack Son Brother Husband Engineer CEO Father Don’t get too personal, instead,TARGET INTENT & CONTEXT! What to recommend ?

4. 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!

5. Social Science & Brain Science Has Proven • Human are less predictable at an individual level • Peers are very predictable within the peer context • 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!

6. Problem

7. Your Competitors • Lost business Online Value • Low conversion • Low AOV • Low engagement $ Support Center The Big Bypass • Costly calls & emails • Upset customers 8 of 10 Visitors are Abandoning Websites Poor Search & Navigation Costs You Acquisition Cost Site Experience Search & Navigation • Email • Online Ads • Press / Media • Offline / TV / Radio 83% fail* (lost or abandoned) * The Wall Street Journal, 1/24/06

8. Measuring the Loss – Navigation • 6 clicks on average to find useful content • 95% visitors abandon a site within 3 clicks • Yields poor conversion rate The Useful Page Link Link Link Link Link Link Link Link Link Link Link Link 6 5 4 Your Competitors 3 2 1 • Lost business Potential Customer 95% of visitors are gone!

9. Measuring the Loss – Site Search 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 First Page of Search Results • Conversions defined as: • Orders or transactions • Downloaded presentations or whitepapers • Completed registration forms Second Page of Search Results

10. The Long Tail: Quick Bucks or Quick Sand?- Paradox of Choice

11. The Dream & Nightmare of Long Tail Products Low Profit Margin Sales Products ranked by popularity

12. Solution: Social Science Meets Engineering Sell 1 of many Many small yet lucrative segments But how? Like Minded Peers Crowds > Expert Context sensitive Where are the incentives? Invisible Crowds Actions > Words Whole > Sum of parts Real-time feedback

13. Baynote Technology Social Search Visitor Clubs Recommendations Content Gaps Usage Reports page refers queries links entry trails page sizes negative experience PEERS mouse movement time spent virtual bookmarks virtual print exit trails… • Real-time • Fully Automated Implicit, emergent behaviors Site Owner

14. Customer Examples

15. Recommendations for eCommerce 5 1 4 2 3 1 Similar Products • Comparison shopping • Upsell • Based on affinity or purchases 2 Accessory Products • See associated products • Increased order size • Serendipitous interest or purchases 3 Most Popular • Products with greatest appeal • Cross-site or within categories • Reduced site abandonment 4 AdGuide - Intent-Driven Landing Pages • Recommendations based on web search • “Greeted at Door” • “Concepts to Brands” - 7x increase 5 Social Search • UseRank™ & Implicit Learning • Intent Driven & Adaptive • Implicit Folksonomy • Works with Endeca, FAST, any engine • Support Audio, Video & all Content Types

16. eCommerce Example: US Appliance Profile • Online since 1999, among the largest national appliance retailers • 10,000 SKU’s • Long Tail site caters to the high-end buyer Goals /Challenges Results • Double digit conversion increase • Double digit revenue increase • Provide recommendations beyond most popular • Increase online sales conversions and revenue

17. Direct Revenue Lift!

18. Media Content Recommendations – Head and Tail • “Tail” recommendations • niche content • highly-targeted • “Head” recommendations • broadly interesting • broadly targeted

19. Normalized A/B Testing

20. Support Person of the Year – You! Profile • 2.6 Billion revenue; 8,000 employees, founded 1983 • 14 million taxpayers Goals / Challenges • Deliver the marketing & sales promise • Maximizing the potential of self-service • Right content in front of the user / findability

21. 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 2 0 0 7 2 0 0 8

22. Baynote Social Search: Winter Vacation

23. Get Immersed – Video Recommendations Engaging Self-maintaining Interest-driven

24. Get Social – Discover Content with Topic Clouds Most engaging “topics” right now Drives content discovery All implicit, no user tagging required

25. A Customer-Run Business Platform

26. Vignette IBM Commerce BEA / Oracle ATG SIs Agencies Responsys CheetahMail ConstantContact iProspect 360i iCrossing Vignette Kana RightNow Cognitor SIs Agencies Google Endeca Autonomy Fast IBM Mercado Home Grown Omniture Coremetrics Google Tumri IBM Commerce ATG Home Grown Bazaarvoice PowerReviews

27. Thank You!