Internet Marketing & e-Commerce
This presentation is the property of its rightful owner.
Sponsored Links
1 / 29

Part Two: Chapter Nine Personalization PowerPoint PPT Presentation


  • 84 Views
  • Uploaded on
  • Presentation posted in: General

Internet Marketing & e-Commerce Ward Hanson Kirthi Kalyanam Requests for permission to copy any part of the material should be addressed to: PERMISSIONS DEPARTMENT THOMSON BUSINESS and ECONOMICS 5109 Natorp Boulevard Mason, OH 45040 Phone: (800) 423-0563. Part Two: Chapter Nine Personalization .

Download Presentation

Part Two: Chapter Nine Personalization

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Internet Marketing & e-CommerceWard HansonKirthi KalyanamRequests for permission to copy any part of the material should be addressed to: PERMISSIONS DEPARTMENTTHOMSON BUSINESS and ECONOMICS5109 Natorp BoulevardMason, OH 45040Phone: (800) 423-0563


Part Two: Chapter NinePersonalization

“The rediscovery of the customer is a byproduct – perhaps the most important one – of the onset of the information revolution.”

Blattberg and Glazer, The Marketing Information Revolution


Benefits of Personalization

  • Product distinction: a standard product becomes a specialized solution


Benefits of Personalization

  • Product distinction: a standard product becomes a specialized solution

  • Low cost access to luxury and status of personalized services


Benefits of Personalization

  • Product distinction: a standard product becomes a specialized solution

  • Low cost access to luxury and status of personalized services

  • Hard to evaluate experience goods become predictable search goods


Benefits of Personalization

  • Product distinction: a standard product becomes a specialized solution

  • Low cost access to luxury and status of personalized services

  • Hard to evaluate experience goods become predictable search goods

  • Survival through differentiation


Benefits of Personalization

  • Product distinction: a standard product becomes a specialized solution

  • Low cost access to luxury and status of personalized services

  • Hard to evaluate experience goods become predictable search goods

  • Survival through differentiation

  • Increased customer loyalty


The Personalization Balance

  • Competitive advantage comes when personalization is supported by focus on customer-relating capabilities (CRC)


The Personalization Balance

SOURCE: George Day and Christophe Van den Bulte, “Superiority in Customer Rlationship Management,” working paper, Wharton School, September 2002


The Personalization Balance

  • Personalization efforts can produce backlash: First Class envy

  • Excessive personalization wastes time

  • Sometimes, standardization is just fine


Personalization Approaches

  • Mass Customization: blending standard products with individual information


Personalization Approaches

  • Mass Customization: blending standard products with individual information

  • Choice Assistance: advice giving systems cut clutter of product choice


Personalization Approaches

  • Mass Customization: blending standard products with individual information

  • Choice Assistance: advice giving systems cut clutter of product choice

  • Personalized Messaging: consumer needs and choices tracked across repeated interaction


Many Opportunities for Personalization

SOURCE: Adapted from Kai Riemer and Carsten Totz, “The Many Faces of Personalization,” in Tseng and Piller, The Customer Centric Enterprise, (New York/Berlin: Springer Verlag, 2003


Mass Customization

  • Customization of how a product is represented or of a product’s specific attributes through four approaches:

    • Collaborative

    • Cosmetic

    • Transparent

    • Adaptive


Mass Customization

  • Collaborative Customization: Online reconfiguration of a product to match consumer preferences

    • Example: Choosing features for a new car


Mass Customization

  • Cosmetic Customization: Packaging choices personalize standard products

    • Example: Choosing an iPod case

SOURCE: Getty Images


Mass Customization

  • Transparent Customization: Product features learn the user and adjust accordingly

    • Example: Google Scholar


Mass Customization

  • Adaptive Customization: Product features naturally customize themselves or are individually configured

    • Example: Weather reports by zip code


Choice Assistance

  • Determining if a recommendation system could enhance online marketing:

    • Do customer lifetime values vary greatly?

    • Do customer needs vary greatly?

    • Are key product attributes qualitative or complex?


Choice Assistance

A recommendation system flowchart


Choice Assistance: Approaches

  • Rules-based: Combines information about customers with understanding of how products are used


Choice Assistance: Approaches

  • Rules-based: Combines information about customers with understanding of how products are used

  • Computer-assisted self-explication (CASE): Advice generated from databases of consumer input


Choice Assistance: Approaches

  • Rules-based: Combines information about customers with understanding of how products are used

  • Computer-assisted self-explication (CASE): Advice generated from databases of consumer input

  • Collaborative Filtering: For complex product choices, linking like-minded individuals for recommendations


Choice Assistance: Approaches

  • Rules-based: Combines information about customers with understanding of how products are used

  • Computer-assisted self-explication (CASE): Advice generated from databases of consumer input

  • Collaborative Filtering: For complex product choices, linking like-minded individuals for recommendations

  • Endorsement: Virtual word-of-mouth referrals link users with preferred providers


Personalized Messaging

  • Users must be authenticated through a fixed, valid address

    • Online through Web servers, browser cookies or registration systems

    • Email and Instant Messaging accounts

    • Cell phones and wireless PDAs


Personalized Messaging

Increasing levels of knowledge about Web user

  • Valid Name and Database

  • Valid Name

  • User ID

  • Cookies

  • Log Analysis

  • Online Behavior

  • Visitor Statistics

  • Anonymous


Personalized Messaging

  • With an established address, online behavior patterns suggest best approach for personalized messaging


Personalized Messaging

  • With an established address, online behavior patterns suggest best approach for personalized messaging

  • Distinct online events or inquiries can provide trigger moments for messaging

    • Example: A user searching for home value calculator could need real estate services


  • Login