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Everything You Need to Know About Personalization - Page 1

November 22, 2000

In this article we'll look in depth at what personalization means for internet developers, why it's important, and how to implement a good strategy for personalization on the internet.

Personalization is a very hot topic in internet development these days. We all know the basics of personalization, but few know the topic well enough to suggest strategies for implementing it in their own businesses, or for clients. Adequate personalization requires more than color customization of a web site. In this article, we'll take an in depth look at personalization, what is required of it, why we need it, and how to build it.

Personalization - What is it?

The push for serious personalization is coming mostly from e-commerce companies, and those that seek to foster customer relationships and build profitable web sites. After all, the best customer is a happy customer, and if we can tailor our web site to do everything you could possibly want, and then some, then we'll get more of your dollars. Right?

The focus of personalization is to give a user a customized experience when shopping at a web site, i.e., to make online shopping as real as in-person shopping. The difference is, that with online shopping, the seller can be much more "in-your-face" than in-person shopping. The part many people forget about personalization, is that it's not just allowing customers to alter a web site's appearance (i.e. color changes, news headlines, etc), but also about reacting to the user's behaviour. Imagine this real world scenario:

A customer walks into a department store. He or she can move things around, carry clothes around the store and drop them in other places, move signs around, etc. A customer can do that at any store. What really sets apart a good shopping experience is how well the store workers react to your needs. If a customer complains to a manager about shoddy service or damaged items, the good manager would adjust his policy for that customer; perhaps give a slight discount, or order a new item, etc. This is the essence of online personalization.

In the online world, though, you don't have physical managers to help customers out as such - rather, the server and the internet application are the managers. These two have to react to the customer's needs.

One thing online personalization can do that humans can't, is anticipate a customer's needs. For instance, in a real store, if a store employee notices a customer checking out the home goods department, he won't approach the customer and say, "How would you like a coupon with that?" or "Customer who bought that, also bought ..." (That may or may not be a good idea...but that's another story.) With online personalization, you can do just that. If a customer is spending some time (RE: clicks) on one portion of your website, you can prompt them to see if they'd like to further customize this section (or adjust it without their knowledge).

Personalization is much more than simply allowing a user to choose their favorite colors for a website - it involves letting the customer customize the site, and let the site customize itself depending on what you think the customer wants. Granted, this in-you-face personalization can sometimes get annoying for customers, but the impacts of that are also for another article.

Contents:

Part One
Personalization Techniques
Personalization Implementation
Personalization Simulation
A Few More Considerations

Part Two
Introduction
A Situation
Step 1 - Making Customers Happy
Step 2 - Informed Customers
Step 3 - Checkout
Conclusion

Personalization Techniques - Page 2


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