Ronny Kohavi, former Director of Data Mining at Amazon, describes penalizing email marketing performance metrics with the quantified long-term value lost from customer unsubscribes.
“And then when we started to incorporate this formula, more than half the campaigns that were being sent were negative.”
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More from Ronny Kohavi
What-if
Kohavi: Airbnb would be in a better state today with more experiments
“I believe that had Airbnb kept people like Greg really, which was pushing for a lot more data driven and had Airbnb run more experiments. It would have been in a better state than today, but it's the counterfactual. We don't know.”
Never ship flat experiment results due to the hidden maintenance overhead
“Flat to me, if something is not Statsig, that's a no ship because you've just introduced more code. There is a maintenance overhead. To shipping your stuff. I've heard people say, look, we already spent all this time. The team will be demotivated if we don't s…”
Airbnb's weak experimentation platform forced heavy hiring of data scientists
“I think, you know, one of the things that I will say at Airbnb is the analysis was relatively weak. And so lots of data scientists were hired to be able to compensate for the fact that the platform didn't do enough.”
Microsoft's overall experiment failure rate is 66%, reaching 85% at Bing
“So overall at Microsoft, About 66%, two-thirds of ideas fail, right? And don't think the 66 is accurate. Like, you know, it's about two-thirds. At Bing, which is a much more optimized domain after we've been optimizing it for a while, the failure rate was arou…”
Airbnb's experiment failure rate was 92%, while Google Ads hit 80-90%
“And then at Airbnb this 92% number is You know, the highest failure rate that I've observed. Now I've quoted other sources that, you know, it's not that I worked at groups that were particularly bad booking Google ads, other companies published numbers. There …”
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