© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.

Experimentation Platforms: Build or Buy?RecSys 2014Mike Lo, PayPal

© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.

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• Product

• Test Ops

• Merchant Testing

• Knowledge Mgt and Insights

• Experimentation Analytics

Hello!Mike Lo, Sr. Manager - Experimentation, PayPal

PayPal

Experimentation Program

• Manage PayPal’s Experimentation Program

• Formerly part of eBay’s Program

• Build or Buy?

• We did both at PayPal

Expectations for today’s talk

Focus on Experimentation Platform

• PayPal’s ‘Testing Story’

• Some comparison with eBay program.

© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.

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Words words words

Big DATA

AN

ALY

TIC

S

Statistics

Ag

ile Mobile

Beta

Ramp

InsightsR

and

om

Alp

ha

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Becoming Data-Driven is difficult!It doesn’t happen overnight. It took us years.

Product

Process

People

© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.

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We bought.

© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.

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Technology Adoption eBay-focused

PayPal = eBay right? What about the existing platform?Rationale why we didn’t implement the eBay Experimentation Platform

• PayPal’s tech stack

• Fix Tracking

• Can’t wait

• Quick wins

• Endorsement

• Program, not the Product.

• Built ground up for eBay

• Tightly coupled with eBay systems

• Need to decouple features

© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.

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Outcome?Ran experiments successfully for 12 months… then …

Couldn’t Scale

Had to cut the cord

Result: Implemented eBay Platform

© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.

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No.

It’s all about the TESTING NEEDS of your organization.

So are you advocating to build rather than buy?

© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.

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No Product Tests Keep it separate? PayPal’s Needs

What happened?Like many companies, the need started from Marketing but didn’t end there.

• Product Pages

Marketing Pages Product Pages

• Testing different content variants • Testing different feature variants

• Technical Limitations • Is there a clean distinction? • 20 experiments is nice. But how

do we get to 2,000?

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Why it made sense for PayPal to build instead of buy3 main reasons PayPal is investing to build

1 Analytical

2 Technical

3 Scale

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1 - High Fidelity AnalyticsOur site is an ecosystem

Single Enterprise Testing Solution

Scientific rigor in the results

Other sites have natural ‘fences’

© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.

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Agile Product Lifecycle Who does your dev? Look beyond

2 - Technical agilityIt’s all about going Agile!

• PayPal’s tech stack

• Master of your domain

• Data

• Site speed performance

• Rolling Full-Bright

Test Plan Design Code Validate

Smoke Test

• Coupled with PDLC

• Code once, push in minutes

• Allows MVT

Biz Req Product Req

Eng Req QA Release

Alpha Beta AB Test Collect Analyze Ramp

© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.

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Volume Sophistication Deeper Insights

3- Scaling to the next levelUtilizing the platform to its fullest potential

• Thousands of experiments

• Patented mechanism

• Utilizing PayPal’s platforms • Entire data pipeline

• Automated design

• Real-time analytics

• Data modeling

© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.

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Beware2 potential unforeseen effects of building a robust platform, if left un-checked…

Platform is reduced to a CMS tool

Ramping / Throttling / Release tool

© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.

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If you build it, will they come? Again, it is not just about the Product… follow through with Adoption!

Product

Process

People

© 2014 PayPal Inc. All rights reserved. Confidential and proprietary.

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Questions?Thanks for listening!