How Personalization Works in Online Businesses
How Personalization Works in Online Businesses
In the world of internet business, personalization is one of the
common methods now being practiced in order to target ones
potential customers. Often times known as behavioral targeting,
this process involves customizing websites pages according to users
characteristics or preferences.
Moreover, personalization is targeting each individual visitor
of your website in order to meet their needs effectively and
providing fast interaction. Thus, increasing customer satisfaction
and consequently elicit potential sales.
This type of approach has actually been put to use decades ago
where sales are done one-on-one. This has been proven effective by
many sales agents, direct selling businesses and the like where
personalized service is often times the key technique in gaining
sales. Today, online marketing is using the same technique in
capturing the desires of their visitors. Personalization
So how does personalization works in online business?
Collaborative Filtering
Filtering is applied to the information gathered from the
different sites, then select relevant data that is applicable to
the e-commerce experience of an individual or group of
visitors.
User Profiling
This is done by collecting the data from various sites and using
them to create a personalized web page.
Data Analysis
This is a tool used to be able to predict the activities or
future interactions in your website.
One big concern with regard to this method is the privacy issue.
Remember that the core approach in personalization is the gathering
and the using of personal information of the person. Hence, it is
vital that the privacy of this information should be kept
securely.
As such, the Personalization of Consortium, an international
advocacy group was organized to promote and provide guidelines in
one-on-one marketing practices. This was founded by the following,
Pricewaterhouse Coopers, DoubleClick and American Airlines.
They have established ethical information and privacy management
objectives. One example is that enterprises must inform visitors
about the information being gathered and for what purpose such data
will be used.
As of March 2000 survey, results show that out of 4,500 users,
73% gave positive response saying that websites retaining their
personal information prove to be helpful. Only 15% were not willing
to participate or provide their personal information online.
For more information, visit our site at
http://www.maxymiser.com/resources/behavioral-targeting-and-personalization
